Durigan: Inflationary pressure comes from disarray caused by war

The war in the Middle East is one of the main reasons for inflationary pressure in the country, according to Finance Minister Dario Durigan.

The international conflict caused an increase in the prices of agro-industrial products, chemicals and fuels, putting pressure on inflation and impacting interest rate policy.

In an exclusive interview with CNN Brasil, Durigan refuted criticism that the government was generating price increases with increased spending, and stated that the fiscal framework maintains control over public expenses.

The minister also said that programs aimed at specific sectors, such as credit lines for app drivers and truck drivers, do not have a relevant macroeconomic impact on inflation.

He also pointed out that Brazil has historically lived with high interest rates due to structural factors, such as low savings and issues linked to the financial market and economic expectations.

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Source: CNN