In Sao Paulo on February 6th, Brazilian President Luiz Inacio Lula da Silva expressed concern about high food prices in the country, stating that he expected a deceleration in price growth going forward. Despite this worry, Lula conveyed optimism about the economy, describing it as being in a prime state. He highlighted better-than-anticipated economic growth and assured that inflation was manageable, even though it exceeded the central bank's target range of 1.5% to 4.5%.
Lula observed that the Brazilian real remained weak compared to the U.S. dollar, but he anticipated an adjustment, noting that the local currency had appreciated by over 6% since the beginning of the year after reaching record lows in December.