Aécio, who chose the economy as his main focus, is now focusing on inflation.
The pre-campaign of the senator from Minas Gerais, seeking his nomination as the PSDB's presidential candidate, had already chosen the economy as the main subject in its criticism of the Dilma government. In his weekly article in Folha, Aécio gives further hints: he will focus his attacks on high inflation. Will it work?
Minas 247 - In his weekly column in Folha de S. Paulo, which is serving as one of the themes of his pre-campaign for the nomination of his name as the opposition candidate in 2014, Senator Aécio Neves (PSDB-MG) once again attacks the Dilma Rousseff government. Once again, he demonstrates that the focus of his criticism will indeed be the economy. The novelty now is that the former governor of Minas Gerais hints that he intends to focus even more, this time expressing dissatisfaction with the high inflation rate.
From an electoral standpoint, there's no doubt that the topic enjoys widespread support. Inflation, in fact, harms the poorest citizens more, as they are unable to access the market-created protections available to the upper classes. The question is whether the effect will be as desired, since no one is playing alone in this contest.
The Dilma government and the PT (Workers' Party) could, for example, point out that the price index rose more during the second term of the PSDB (Brazilian Social Democracy Party) in the presidency (between 1999 and 2012) than during Dilma's first two terms. In the case of the FHC (Fernando Henrique Cardoso) government, the increases were 8,94%, 5,97%, 7,67%, and 12,53%; in 2011 and 2012, already with Dilma in the Alvorada Palace, it was 6,5% and 5,84%.
Aécio could, however, shed light on the rise in prices of widely consumed products and on the fact that inflation has far exceeded the rate of economic growth. The issue promises to be interesting…
Read below the new article by the senator from Minas Gerais in Folha de S. Paulo:
The cruel face of inflation
The debate over the accounting tricks used by the federal government in closing its 2012 accounts, and the implications for the government's credibility with investors and sectors of society, has diminished attention on the inflation recorded in the country, which was released last week.
The figures measured by IBGE confirm yet another negative aspect of the government's economic policy, showing that, for the third consecutive year, the Broad Consumer Price Index (IPCA) exceeded the target center of 4,5%, reaching 5,8%.
Compared to the mediocre performance throughout the year, which generated a meager 1% GDP growth, this result highlights a worrying situation of high inflation and a nearly stagnant economy.
December's results confirmed the scenario of high inflation, closing the month at 0,79% – the highest rate for the period since 2004. For 2013, with the exception of forecasts from economic authorities, predictions are that the rate will remain above the center of the target.
It's bad for everyone – for the country and for Brazilians, especially for the lower-income segments. Inflation is the most perverse of "taxes," since it penalizes, above all, workers with lower purchasing power, eroding their buying ability.
The INPC (National Consumer Price Index) – which measures the expenses of families with a monthly income of up to five minimum wages – closed 2012 above the IPCA, reaching 6,2%. The Consumer Price Indicator – Class 1, measured by FGV, which takes into account the inflation of families with up to 2,5 minimum wages, reached 6,9%.
These are precisely the segments of the population that have no way to protect themselves from inflation and feel most intensely the weight of rising costs for essential services, such as health insurance and food, including basic food items.
According to the INPC (National Consumer Price Index), food consumed at home became 10,6% more expensive last year. In Belém (PA), the increase reached 14,2%. Of the metropolitan regions surveyed, the concentration of indices above the national average in the North and Northeast is alarming.
By eroding the purchasing power of the most vulnerable families, inflation restricts access to basic necessities and also subtracts resources that would be used to pay off loans taken out in recent years of credit expansion, accelerating the risks of default.
The price the country is paying for the decisions the government has been making and for those that have been neglected, such as reforms that should have been implemented, is high. Good governments manage the foundations of the future in the present.