Brazil, who had plummeted to a record low 22nd and spent exactly one year outside the top 10, jumped to ninth after winning all five of their matches at the tournament which they hosted.
They were also helped by a 3-0 win over France in a warm-up match.
Brazil's low position had been a combination of their lacklustre recent results and their lack of competitive internationals.
Before the Confederations Cup, Brazil, who qualify automatically for next year's World Cup as hosts, had spent the last two years playing only friendlies, which earn fewer points under the complex calculation system.
Oceania champions Tahiti dropped 16 places, from 138th to 154th, after losing all three games and conceding 24 goals at the Confederations Cup.
The rankings continued to make embarrassing reading for Asia, whose highest-ranked team Japan have dropped to 37th place. Australia and South Korea are the only other two Asian confederation teams in the top 50.
Spain stayed top, despite losing 3-0 to Brazil in the Confederations Cup final, while Germany remained second and Colombia climbed to third.
Bosnia (14th), Peru (19th), Albania (37th), Cape Verde (49th), Dominican Republic (90th), Tajikistan (106th) and Guam (176th) all achieved their highest-ever rankings.
Rankings:
1. (1) Spain
2. (2) Germany
3. (7) Colombia
4. (3) Argentina
5. (9) Netherlands
6. (8) Italy
7. (6) Portugal
8. (4) Croatia
9. (22) Brazil
10. (12) Belgium
