The Minister of Finance, Fernando Haddad, said this Thursday (4) that Brazil will record, considering the current government’s four mandates, the lowest inflation in the country’s history. The statement was made during the 6th plenary meeting of the Council for Sustainable Economic and Social Development (CDESS), better known as the Council.
“Inflation, which is a legitimate concern for every citizen, in four years, will be the lowest in all of history. It will be lower than that of the Empire; the Republic; the Old Republic; the Estado Novo; the Real Plan. It will be the lowest of all”, said the minister.
Currently, inflation measured by Broad National Consumer Price Index 15 (IPCA-15) registers a level of 4.5% – considering the 12 months ending in November.
According to him, the government is managing to reconcile the best of two worlds: a country with lower unemployment and lower inflation. Brazil reached an unemployment rate of 5.4% in the last quarter. It is the lowest index recorded in the historical series of the Brazilian Institute of Geography and Statistics (IBGE), started in 2012.
“When you manage to reconcile a drop in inflation with a drop in unemployment, you have a lower level of discomfort in a society. We are managing to reconcile this”, said Haddad.
Food
In the minister’s assessment, both the Safra Plan and the National Program for Strengthening Family Agriculture (Pronaf) helped to reduce inflation rates affecting food.
“It’s not just that the average inflation of all products is low. We will have the lowest food inflation, which hurts low-income workers so much. It will be the lowest in the historical series”, he said, stating that the result was obtained amid policies to increase the minimum wage.
Haddad lamented the lack of repercussions on the good economic results that have been obtained by the current government. He cited as an example the record investment in infrastructure which, in 2024, reached R$261 billion – according to him, the best moment in history, in terms of investment in infrastructure.
“We don’t see this being commented on or discussed. When we tell foreign investors they are surprised. They say no one shows this. Today the stock market is, once again, breaking records. Worker and business confidence is also breaking records”, he said.
He recalled that the dollar is at its lowest price in many months. “They said that the dollar would reach R$8, and it is at R$5.30. I am sometimes perplexed to see predictions that are repeatedly not confirmed.”
“When a prediction is not confirmed, it is normal. After all, it is difficult to predict things in economics. But, sometimes, the same person is consulted after making 10 predictions wrong. And he continues to be consulted to predict. Why, then, is this person being consulted with so many wrong projections, and whoever is getting it right is not heard?”, he added.
Fiscal goals
The minister also recalled that the government is regularly charged with meeting fiscal targets. According to him, the fiscal deficit of President Luiz Inácio Lula da Silva’s current term will be 70% lower than that of the previous government; and 60% smaller than the government that preceded it.
“We are providing total transparency to public accounts. We are once again respecting international standards. That is why we are today the second destination for foreign investment in the world.”
Gleisi Hoffmann
Also present at the Council plenary, the Minister of the Institutional Relations Secretariat, Gleisi Hoffmann, reinforced that the country’s economy is growing in a sustainable way, “improving people’s lives”.
“This council is part of this process, contributing ideas and proposals, such as the [relativa à] sustainable public procurement strategy, which will serve as the basis for a presidential decree proposal”, said the minister.
According to her, this plan will seek to stimulate the national economy and industry, in order to expand social inclusion processes. She cited the Council’s proposal, which provides for the electronic registration of duplicates, a measure that should “eliminate inefficiencies and reduce the risks of fraud with the aim of reducing the country’s credit cost”, stated Gleisi.
IR exemption and 6 for 1 journey
Gleisi Hoffmann took advantage of the meeting to talk about the positive effects that the income tax exemption for those earning up to R$5,000 will have on Brazil. “We are breaking a tradition of privileges and injustice that has always prevailed in our country,” he said.
“This first step on the path to tax justice is a sign that we can advance much further, achieving, for example, the end of the 6 to 1 work scale, allowing us to improve the quality of life of the vast majority of workers in our country”, he added.
Vice President and Minister of Development, Industry, Commerce and Services, Geraldo Alckmin highlighted policies aimed at various sectors of the economy, including the automobile industry. “Several automakers are resuming or expanding their production,” he said.
