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Home»Economic News»Decaffeinated Brazilians blame Lula for surging cost of morning brew
Economic News

Decaffeinated Brazilians blame Lula for surging cost of morning brew

February 23, 2025No Comments2 Mins Read
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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

The rising cost of coffee in Brazil is causing concern as it impacts the popularity of President Luiz Inácio Lula da Silva. Grocery bills have been on the rise in the world’s largest coffee-producing country, leading to discontent among the population.

This increase in coffee prices is a result of global factors such as extreme weather due to climate change. However, the nearly 40 per cent rise in prices in Latin America’s largest economy has become a symbol of the broader dissatisfaction with food and drink inflation, affecting Lula’s approval ratings.

Amidst this, viral videos on social media platforms like TikTok are making light of the situation, with jokes about hiding coffee flasks when guests arrive, a nod to the tradition of offering coffee to visitors in Brazil.

The average coffee consumption in Brazil has also decreased, reflecting the impact of rising prices on consumer behavior. This issue has cast a shadow on Lula’s chances of re-election in 2026, as recent polls show a shift in public opinion.

Despite Lula’s efforts to improve living standards and boost the economy, the current situation of rising food and drink prices has led to a decline in his popularity. The cost of basic necessities has increased significantly, leading to discontent among voters.

While Lula’s government has seen some economic growth and improvement in unemployment rates, the population’s dissatisfaction with the rising cost of living is evident. Critics argue that excessive state spending is contributing to the inflationary pressures.

To address these concerns, the Brazilian government is considering measures such as income tax exemptions for lower earners and providing assistance to the poorest households. However, the challenges of stagflation, a combination of low growth and high inflation, continue to loom over the economy.

As Brazilians navigate these economic challenges, adapting to cheaper alternatives like coffee blends, the political landscape remains uncertain. The upcoming elections in 2026 will be crucial in determining the country’s direction amidst the current economic realities.

Blame Brazilians brew cost Decaffeinated Lula Morning surging
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