In a message to Congress, Lula affirms that the government will not deviate from fiscal robustness.
The government also said it expects the reduction in inflation to continue.
BRASILIA (Reuters) - President Luiz Inácio Lula da Silva stated, in a presidential message sent to the National Congress this Monday, that the government will not deviate from its commitment to "fiscal robustness" and estimated that inflation will continue to decline this year and next.
"In 2025, the reduction in inflation should continue, supported by the more positive performance expected for the grain harvest, electricity rates, and fuels," says a presidential message read this Monday at the opening ceremony of the Legislative session.
"The increase in the interest rate differential between Brazil and other economies should help the exchange rate dynamics, also contributing positively to the slowdown in prices," argues the document, submitted to Parliament by the Minister of the Civil House, Rui Costa.
The government estimates in the message that by mid-2026 inflation will reach close to the center of the 3% target.
Regarding public accounts and his efforts to balance them, Lula states in the message that "the review of spending is a modern instrument of fiscal management and will bear more fruit in 2025, as part of the strategy, from which the government will not deviate, of building structural fiscal robustness."
(Reporting by Lisandra Paraguassu; additional reporting by Maria Carolina Marcello)
