Brazil’s Finance Minister Fernando Haddad warned that the new government may delay its inflation target.
“I think this improvement is to be made,” he told CNN. So maybe now’s the time.”
Haddad underlined his preference for “a continuous inflation target” over a calendar year-based one, claiming only Brazil and Turkey adopt the latter.
Luiz Inacio Lula da Silva wants higher inflation targets and looser monetary policy.
The central bank targets 3.25% inflation in 2023, 3% in 2024 and 2025, and 1.5 percentage points tolerance.
In the 12 months through April, inflation was 4.18%, and private economists estimate 6.03% this year.
The central bank warned that increased targets may have raised inflation expectations, keeping interest rates high.
In June, the National Monetary Council—finance minister, planning minister, and central bank governor—will examine inflation targets.
