As in the tax package, government has different views of braking inflation, says analyst

by Andrea
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Paulo Gama, political analyst at XP, participated this Friday (24) in the program Morning Call da XPand said that government discussions on how to contain food inflation go to the same line of negotiation as those held before the tax package definition at the end of last year.

“We are seeing again disputes of distinct views within the government,” he said. According to Gama, the government has already put as a priority in the next two years “cheap food on the table” and announced this at this week’s ministerial meeting.

Survey of Ideas

“For now, it is still a phase of great discussions and survey of ideas and seeking public policies that can walk in that direction,” he said.

As in the tax package, government has different views of braking inflation, says analyst

The analyst stated that the “Ministry of Finance tries, of course, to work at a different tip, preventing any public policy from having fiscal impact.”

“We have seen these discussions happening this way, such as the government package presented by the government (at the end of last year),” he said. He recalled that the farm’s view was different from the government to adjust expenses, but then a middle ground was found.

Effect of monetary policy

“What the farm has defended is that monetary policy has its effect. We have interest -paying interest rates, ”he said.

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“And what the farm tries to talk is that monetary policy can have expected effect on reducing food prices, without interventionist policies or some kind of extraordinary fiscal expenditure that impacts public accounts,” he added.

Paulo Gama also stated that discussions within the government to contain food inflation will continue, even with the formal return of Congress to work in February.

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