Business · Economy · 1 day ago
Hedge Investments CEO says Brazil’s 3% inflation target is out of reach
André Freitas, CEO of Hedge Investments, says Brazil’s 3% inflation target is not achievable under current economic conditions.
He argues that Brazil’s economy has features that keep inflation high, including wages and rents that are regularly adjusted and a lasting memory of past inflation.
In 29 years of inflation targeting, he says, inflation was below 4% in only three years, two of them during the deep recession from 2014 to 2016.
Freitas also points to global pressures, including geopolitical tensions and higher costs for shipping, supplies and insurance.
He says the target should be reviewed to reflect these conditions, which he sees as affecting the wider world as well as Brazil.
But he says changing the target alone would not be enough and should be paired with a credible fiscal plan that can be carried out.
André Freitas, CEO of Hedge Investments, says Brazil’s 3% inflation target is out of reach under current economic conditions.
He argues that the target should be revised to reflect a more inflationary global environment.
Freitas says the change should be accompanied by a credible, workable fiscal package.
He points to Brazil’s history of inflation, automatic adjustments to wages and rents, and strong inflation memory as obstacles to keeping inflation low.
- Who
- André Freitas, CEO of Hedge Investments.
- What
- He says Brazil’s 3% inflation target is out of reach and should be revised, alongside a credible and workable fiscal package.
- When
- CNN Brasil published the interview on October 10, 2026.
- Where
- Brazil.
- Why
- Freitas says current economic conditions, Brazil’s inflationary structure and a more inflationary global environment make the target unattainable.
This story does not have two clearly opposing sides.
uma falácia criada num mercado que tinha outras circunstâncias
Junto com esse pacote, eu vou mudar a meta de inflação, eu vou adequar ela à nova realidade
Brazil’s GDP fell by more than 8% during a severe recession, and two of the three years with inflation below 4% occurred in this period.
Brazil’s 3% inflation target was designed.
CNN Brasil published Freitas’s assessment that the target was out of reach under current conditions.
- Inflation target
- 3%
- Speaker
- André Freitas, CEO of Hedge Investments
- Inflation-targeting system
- 29 years; only three years with inflation below 4%
- Recession
- 2014–2016; GDP fell by more than 8%
- Publication date
- October 10, 2026
Sources
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