Business

Bolsonaro missed chances to alleviate inflation with major Middle East ally

Much of Brazil's inflation woes are linked to the global oil landscape, with countries such as Saudi Arabia withholding their production — Bolsonaro had the chance to ask for help from the Saudis, but wasted his opportunities

saudi arabia fuels
Brazilian Foreign Minister Carlos França speaks during meeting with the Foreign Minister of the Kingdom of Saudi Arabia, Prince Faisal bin Farhan Al Saud. Foto: Gustavo Magalhães/MRE

While the Brazilian Central Bank engages in the world’s most intense monetary tightening policy, the country’s 12-month inflation rate remains in the double digits. Over the last year, transport costs — which affect most economic activity — have risen 19.6 percent. Overall fuel prices have gone up by an eye-watering 45 percent.

Diesel and gasoline prices are above the 40-percent inflation threshold, garnering significant popularity losses for Brazil’s far-right President Jair Bolsonaro, who asked his staff and allies in Congress to draft legislation alleviating the crisis. In October, the lower house passed a bill reducing the rate of...

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