Brazil Roundup: Inflation, coffee production, court ruling for slain journalist
Increase in pork prices
In January, Brazil experienced fluctuating trends in pork prices. Increased demand from the industry resulted in higher prices for live swine and pork cuts in regions such as Goiás and Paraná. However, a downturn in overall demand due to reduced purchasing power led to declines in other areas. Exports of pork decreased by 3.2% compared to December 2024, with daily averages estimated at 4.4 thousand tons. If the current trend persists, total shipments could potentially reach 95.8 thousand tons.
Court ruling for slain journalist
The family of journalist Vladimir Herzog, who faced torture and execution during Brazil's military dictatorship, is celebrating a court ruling. This ruling provides his widow, Clarice Herzog, with a monthly stipend exceeding 34,000 reais (approximately $6,000) for life. This decision, enacted by a federal court in Brasília, reflects ongoing reconciliation efforts within Brazil as the nation continues to address the impacts of its two-decade-long dictatorship, wdrb reports.
Inflation
Brazil's Finance Minister, Fernando Haddad, has projected that inflation rates will remain above the target of 4.5% until June. According to money.usnews, he anticipates a positive surprise owing to strict monetary policy from the central bank, a robust crop yield, and appreciation of the Brazilian real. Current forecasts predict an inflation rate of 5.51% by the end of 2025, which surpasses the target range set by the monetary authority. Haddad noted that although inflation is expected to be persistent due to high-interest rates, any price declines may occur more swiftly than earlier predictions. In light of these concerns, the central bank raised the benchmark interest rate to 13.25%, with further increases possible in March, despite criticism from President Lula over the high rates.
Coffee production
The coffee sector in Brazil is facing rising concerns related to the emergence of "fake coffee" products, attributed to skyrocketing coffee prices. According to the Brazilian Coffee Roasters Association (ABIC), several powdered coffee products have been found to contain minimal actual coffee, instead incorporating coffee waste and artificial flavouring agents. With prices soaring over 50% in three months amid supply constraints caused by weather conditions, ABIC has approached health authorities and the Agriculture Ministry to address the legality of such misleading products. One notable product, Oficial do Brasil, is marketed under false pretences yet is claimed by producer Master Blends to be government-sanctioned. These counterfeit coffee items are retailing at approximately one-third the cost of genuine coffee, gmanetwork reports.
Warship discovered
The Brazilian Navy has confirmed the location of the "Vital de Oliveira," a warship sunk by a Nazi submarine on July 19, 1944, off Brazil's coast. This incident resulted in the deaths of around 100 out of 270 crew members. Although the wreck was originally discovered in 2011, its identification was recently achieved through advanced sonar imaging techniques. Initially named "Itaúba," the ship was repurposed during WWII to transport Allied forces. Smithsonianmag reports that the vessel is recognised as the only Brazilian Navy ship destroyed by enemy action, with German submarines also responsible for sinking 34 Brazilian merchant vessels during the conflict. Brazil played a significant role in World War II, contributing over 25,000 men to the Brazilian Expeditionary Force.
