Photo: Dilma Rousseff
President Dilma Rousseff acknowledged that higher inflation means “not all is right” with Brazil’s economy, although she said consumer prices are “under control” and rejected opposition forecasts of a crisis in 2015, the media reported Wednesday.
“This story about how everything’s going to explode in 2015 is absurd. It’s ridiculous,” Rousseff said Tuesday night at a dinner with female journalists at the Alvorada palace, her official residence.
Brazil “is a solid country with economic stability, sophisticated industry, very attractive for international capital,” she was quoted as saying by the country’s leading dailies.
Brazil’s benchmark IPCA consumer-price index rose 6.15 percent in the 12 months ending March 31, near the 6.5-percent ceiling of the government’s target range.
Since 2006, the government has set an annual inflation target of 4.5 percent, with a tolerance margin of plus or minus 2 percent.
During the dinner, the president criticized a proposal by one sector of the opposition to reduce the inflation target to 3 percent.
That would cause the unemployment rate to rise from a current level of 5 percent to nearly 8.2 percent, according to Rousseff, who supports keeping the inflation target unchanged while also making “social and infrastructure investments.”