Subsidizing food or energy could provide a solution to ease the social cost of inflation, the president of Brazil's Central Bank, Roberto Campos Neto, said.
At an online event organized, among others, by the European Central Bank the official said that "transferring part of the positive impact [the increase in revenue by the State] to solve social issues, via subsidies, that is a good solution."
Along these lines, Campos Neto also warned that "once subsidies are created, there is a risk that they will become a permanent expense."
According to the president of the Central Bank, the inflation problem will be solved by the private sector and not by governments, since, although intervening in oil or energy prices "will solve the problem in the short term," it could drive away investments.
@AXELKAISER este es el último gráfico que publicó el fmi, al día de hoy han aumentado mucho más, con un 2% arriba, que pasó con el triunfo de la derecha en Brasil, que alcanza un 11%de inflación y la hambruna extrema, donde están los defensores de la "libertad" ahí? pic.twitter.com/OxwDqrt8Ge— Diego Tapia (@DiegoTa10025875) May 29, 2022
This is the last graph published by the imf, to date they have increased much more, with a 2% increase, which happened with the triumph of the right in Brazil, which reaches 11% inflation and extreme famine , where are the defenders of "freedom" there?
In the wake of increasing fuel prices, the Government and the National Congress are studying measures to contain the situation. In particular, diesel, which is key in the transport of goods, produces a domino effect on inflation.