Brazilian Finance Minister’s Outlook on Food Prices

SAO PAULO (Reuters) – Brazilian Finance Minister Fernando Haddad expressed optimism about food prices in 2023 during an interview with RedeTV.

He expects prices to soften due to strong agricultural production and a recovering Brazilian currency. However, he cautioned they would likely remain high until production corrects the current price distortion.

Haddad also predicted Brazil’s economy would grow by 2.5% in 2025, a decrease from last year’s expected 3.5%. “We have room to grow 2.5% by reducing inflation,” he stated.

Earlier this week, Brazil’s central bank raised the benchmark interest rate by 100 basis points to 13.25%, with another increase anticipated in March amid ongoing inflationary pressures.

The full interview will air later on Thursday.