Caraí is a Brazilian municipality located in the northeast of the state of Minas Gerais.

The economy is based on cattle raising, services, and subsistence agriculture, with the main crops being coffee (2,600 ha.

[4] Neighboring municipalities are: Padre Paraíso - Catuji - Itaipé - Novo Cruzeiro - Araçuaí.

The above figures can be compared with those of Poços de Caldas, which had an MHDI of .841, the highest in the state of Minas Gerais.

The lowest was Manari in the state of Pernambuco with an MHDI of .467 out of a total of 5504 municipalities in the country as of 2004[update].