In an effort to address escalating¹ food prices, the Brazilian government has announced the removal of import taxes on several essential food products, including sugar, coffee, corn, and beef.

The policy change also encompasses² the elimination³ of import duties on biscuits, pasta, olive oil, sunflower oil, and sardines⁴. Additionally, the import quota⁵ for palm oil will be increased to 150,000 metric tons. These measures are pending⁶ approval from a government trade body and are expected to take effect in the coming days.



However, recent data indicates that Brazil’s annual inflation rate rose to 4.96% in mid-February, the highest since late 2023. Food and drink prices specifically increased by an estimated 7.12% over the year leading up to February.

The central bank has noted⁷ a significant rise in food costs, attributing it to factors such as drought conditions and higher beef prices. In response, the bank has maintained its benchmark interest rate at 13.25% to combat inflation.

Economists⁹ have expressed skepticism about the impact of these measures, citing Brazil’s position as a leading global producer and exporter of agricultural commodities. Felipe Camargo, an economist⁸ at Oxford¹⁰ Economics, noted that most of the targeted items are produced domestically, suggesting that the tax cuts may have a limited effect on reducing prices.