Brazil’s Bolsonaro again blames “stay-at-home” policy for inflation

RIO DE JANEIRO, BRAZIL – On the day it was disclosed that Brazil’s official inflation closed last year above 10%, President Jair Bolsonaro sought to exempt himself of responsibility and blamed policies restricting the circulation of people adopted during the coronavirus pandemic for the widespread rise in prices.

“Remember ‘stay at home, we’ll deal with the economy later’? You can see what the economy looks like now. People stayed home, supported the idea, and now they want to blame me for inflation,” Bolsonaro said in a chat with supporters posted on social networks.

According to data released by the Brazilian Institute of Geography and Statistics (IBGE) on Tuesday, the Extended National Consumer Price Index (IPCA) closed 2021 at 10.06%, well above the 5.25% inflation target set by the Central Bank.

Nevertheless, in his chat with supporters, Bolsonaro said he considers that Brazil is one of the countries that “is suffering the least economically, although it is hard for the people… losing purchasing power”.

The cumulative result last year was the highest since 2015, when the index closed at 10.67%.

It was also above expectations of 9.97% and much higher than the 4.52% posted in 2020.

In an open letter sent on Tuesday to the Minister of Economy to justify the non-compliance with the inflation target in 2021, Central Bank president Roberto Campos Neto said that the institution has been taking the appropriate measures to ensure that the IPCA reaches the targets set for 2022, 2023 and 2024.

Although market projections for this year point to exceeding the established ceiling, Campos Neto reinforced that the monetary authority is still focused on meeting the target in 2022.

For 2022, the inflation target is set at 3.50%, with a maximum limit of 5.00%.

According to the Focus bulletin released by the Central Bank, the market expects consumer inflation measured by the IPCA to stand at 5.03% this year, slightly above the tolerance interval ceiling.