Government feels pleasure with big GDP, but people like it is a small price

The government is experiencing a complicated situation. Even with increased GDP of 3.4%, after growing 3.2% in 2023, lower unemployment in the historical series, increased average workers’ income and reduced inequality, Lula boasts low popularity and will not achieve reelection if the price of food does not fall considerably. I’m not talking about stopping, but falling from the high level you are in.

Food inflation was higher than the general IPCA last year. That is, the poorest felt in their pockets and quality of life more than the average of the population.

Extreme climate events have affected production in the last two years in Brazil, making food more expensive. The Lula administration has been making a point of highlighting this, but from the point of view of consumers, when the zucchini rises it does not matter if it was the fault of the climate, Satan or Godzilla, the final responsibility will be the federal government. Or, more specifically, the lack of enough measurement and impact to mitigate the pricing. Seasonality is accepted, what is not admitted is the food with price that inexorably rises.

At the same time, the expectation of a good crop for 2025 should not serve to forget the perrengue that the country has been going through droughts and floods. Who are also causing human tragedies, such as the more than 180 who died with the lack of preparation of Rio Grande do Sul for heavy rains.

Increased regulatory inventories, incentive to the production of certain crops in other regions, money to the small farmer (responsible for bringing fresh foods to Brazilians), food tax exemption and, as much as Chiem entrepreneurs, import tax reduction (as the government announced, on Thursday, for coffee, meats, sardines, olive oil, pasta and crackers and sunflower oil) are important measures. Not to mention the drop in the dollar, which influences the price of diesel, used on trucks that carry everything we consume.

But adopt measures considering that the climate has changed as well.