SAO PAULO (Reuters) -Brazilian Finance Minister Fernando Haddad said on Thursday he expects food prices to soften this year due to strong agricultural production and as Brazil’s currency regains some ground, but noted that prices would likely still remain high.
In an interview with local TV channel RedeTV, Haddad said food prices tend to stay at high levels until food production “corrects this price distortion to an adequate level.”
Haddad added that the government sees Brazil’s economy growing 2.5% in 2025, slowing from an expected 3.5% last year.
“I believe we have room to grow 2.5% by reducing inflation,” he told RedeTV, which broadcast parts of the interview on its main evening show.
Earlier this week, Brazil’s central bank raised its benchmark interest rate by 100 basis points to 13.25%, and confirmed another hike of that size in March, amid mounting inflationary pressures.
The full interview with Haddad will be broadcast later on Thursday.
(Reporting by Andre Romani; Editing by Anthony Esposito and Brendan O’Boyle)
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