Lula Aides Warn Spending Big to Boost Approval Will Cost Him 2026 Election
- Brazil leader’s popularity at record lows amid high food costs
- Inflation forecast to rise further above target this year
Luiz Inacio Lula da Silva, Brazil’s president, left, and Fernando Haddad, Brazil’s finance minister.
Photographer: Andressa Anholete/BloombergThis article is for subscribers only.
With his popularity at record lows thanks to high inflation, some inside President Luiz Inacio Lula da Silva’s government have begun to issue a dire warning: He needs to get Brazil’s fiscal house in order to salvage any hope of reelection in 2026.
A number of economic advisers have told the veteran Lula that the best way to reverse a popularity decline driven largely by rising food costs is to bolster investor sentiment, anchor inflation expectations and help the central bank bring consumer price increases under control, according to multiple people familiar with the situation.