Brazil inflation to ease additional this 12 months, Lula tells Congress

SAO PAULO (Reuters) – Inflation in Brazil is predicted to ease additional this 12 months and close to the mid-point of the central financial institution’s 3% goal by mid-2026, President Luiz Inacio Lula da Silva stated in a written message to Congress on Monday.

“In 2025, the discount in inflation ought to proceed, supported by the extra optimistic efficiency anticipated for the grain harvest, electrical energy tariffs and fuels,” his message learn.

The slowdown in costs will profit from the rise within the rate of interest differential between Brazil and different economies, which ought to assist with exchange-rate dynamics, in accordance with the doc.

Final week, Brazil’s central financial institution hiked rates of interest by 100 foundation factors and signaled one other improve in March. On Monday, the Brazilian actual set its longest streak of positive factors versus the U.S. greenback in 20 years.

The Brazilian authorities’s spending assessment would proceed in 2025 and never deviate from the dedication to the “structural development of fiscal robustness,” Lula’s message learn.

(Reporting by Lisandra Paraguassu and Maria Carolina Marcello; Writing by Isabel Teles; Modifying by Kylie Madry)