Brazil: High food shows little sign of cooling

Published Mar 5, 2021

Tridge summary

Since the start of the year, food prices in Brazil have continued to rise, driven by strong international demand and favorable market sentiments for commodities such as grains, sugar, and coffee. As the country leads in the export of these products, it is expected that the pressure on living costs for Brazilians will persist. Despite the government's efforts to reduce prices through the removal of common external tariffs and the announcement of import quotas, the cost of essential food items like rice, poultry, eggs, and vegetable oils has remained high. The situation is further worsened by the cessation of emergency aid and the potential for high food prices to negatively impact the popularity of President Jair Bolsonaro. The government's strategy to combat high food prices involves encouraging production growth and considering facilitating imports, though concerns about the influence of commodity investors on prices persist.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

On the rise since the beginning of last year, to the point of generating protests from the population and turning on the warning sign in the government, food prices generally remain firm in the domestic market. And, depending on export products such as grains, sugar and coffee, they may put even more pressure on the cost of living for Brazilians in the coming months. “Agricultural prices will not fall,” says Fabio Silveira, managing partner at MacroSector Consultores. He states that, in addition to the international demand remains strong despite the economic turbulence generated by the pandemic, the dollar quotations have also been supported by the good mood of the markets in relation to commodities, which maximizes increases in the Chicago and New York stock exchanges, for example. example. According to Silveira, the exchange rate favorable to exports also contributes to increases in gondolas in Brazil, since the country leads the world shipments of soy, sugar and coffee and also ...

Source: Beefpoint