The news agency Bloomberg reflected in three different materials published this Thursday (26) the deterioration of President Luiz Inácio Lula da Silva’s government in Brazil.
In a report on the Brazilian economy, Bloomberg highlighted that inflation rose more than expected this month, increasing pressure on the Central Bank precisely at the moment when the monetary authority began an interest rate reduction cycle. The agency cited that consumer prices increased 0.44% in this period, above the median forecast of 0.29% made by economists consulted by Bloomberg, while annual inflation was 3.9%.
The agency recalled that the Central Bank warned that the war between the United States and Iran increased the level of global uncertainty and could make it difficult to control inflation, in addition to reducing the growth rate of the Brazilian economy. The text also highlighted that the external scenario already has an impact on interest rate expectations. The publication mentions that, after the release of inflation data, the market began to bet on fewer cuts in the Selic rate, given the risk that the rise in oil and energy prices would prolong inflationary pressure. The agency also cited that the Brazilian government adopted measures such as reducing taxes on fuel and opening credit lines for companies in an attempt to alleviate the effects of the international crisis.
In another report, this time with a political focus, Bloomberg stated that the more uncertain economic environment has increased pressure on the Lula government, which is facing difficulties in sustaining the growth narrative with controlled inflation in a presidential election year. The agency highlighted that the combination of economic slowdown, inflationary concerns and external tensions has created new challenges for Planalto, which is under pressure due to the pre-candidacy for the Presidency of Senator Flávio Bolsonaro (PL).
According to the report, the increase in the cost of living has fueled dissatisfaction among Brazilians. The text also states that the population’s negative perception of the economy has hampered the Lula government’s strategy to regain support.
In turn, an opinion article published by Bloomberg stated that Lula runs the risk of repeating the same political mistake made by former United States President Joe Biden in 2024, by insisting on running for re-election in a scenario of increasing wear and tear.
In the text, columnist Juan Pablo Spinetto wrote that the Brazilian president faces difficulties in adapting to a country that has changed in recent decades, with voters more skeptical of institutions, greater concern about inflation, crime and corruption, and less identification with the traditional political profile.
The article states that, as happened with Biden, factors such as advanced age, an uncertain economic scenario and international conflicts could become central themes of the campaign and limit the government’s ability to regain support. According to the analysis, in a political environment that values renewal and rupture, Lula runs the risk of being seen as a leader linked to the past, which could increase the difficulties in maintaining electoral competitiveness.
