BRASILIA, 17 Mar. (Reuters) - The president of Brazil, Dilma Rousseff, has vowed not to allow the specter of inflation back to Brazil and has said that his Government would keep in check the rising prices without hurting growth of the economy. In his first major interview with a Brazilian newspaper since taking office on January 1, Rousseff is also committed to opening doors to private investment in airports, struggling to be ready for the 2014 World Cup Games in 2016.
Rousseff, which has cut the budget this year in nearly 30,000 million dollars (21.414 million euros) to get some pressure on the Brazilian economy active, said told the newspaper "Valor Economico" would not allow inflation again, "under any circumstances." When asked if he could give some room for inflation to help raise economic growth, said: "It's like that old image of being a little bit pregnant: you are pregnant or you're not," he asserted.
Still, Rousseff has indicated that the local economy could achieve the government's goal of growth of 4.5 to 5 percent this year despite the impact of budget cuts, higher interest rates and rising uncertainties about global expansion to the extent that oil prices rise. "It is possible to contain inflation taking a sustainable level of growth.
We are taking healthy and sober," said the Brazilian president. The government's growth target is more optimistic than most economists, some of which have cut their forecasts for Latin America's biggest economy to less than 4 percent after an unsustainably rapid expansion of 7.5 percent last year.
Inflation, a historical problem in Brazil, has increased at an annual rate of nearly 6 percent, which lies on the government's target of 4.5 percent annually, with a tolerance of plus or minus two percentage points. The price hikes were caused in part by increases in international commodity prices rather than domestic demand, said. 
Rousseff, which has cut the budget this year in nearly 30,000 million dollars (21.414 million euros) to get some pressure on the Brazilian economy active, said told the newspaper "Valor Economico" would not allow inflation again, "under any circumstances." When asked if he could give some room for inflation to help raise economic growth, said: "It's like that old image of being a little bit pregnant: you are pregnant or you're not," he asserted.
Still, Rousseff has indicated that the local economy could achieve the government's goal of growth of 4.5 to 5 percent this year despite the impact of budget cuts, higher interest rates and rising uncertainties about global expansion to the extent that oil prices rise. "It is possible to contain inflation taking a sustainable level of growth.
We are taking healthy and sober," said the Brazilian president. The government's growth target is more optimistic than most economists, some of which have cut their forecasts for Latin America's biggest economy to less than 4 percent after an unsustainably rapid expansion of 7.5 percent last year.
Inflation, a historical problem in Brazil, has increased at an annual rate of nearly 6 percent, which lies on the government's target of 4.5 percent annually, with a tolerance of plus or minus two percentage points. The price hikes were caused in part by increases in international commodity prices rather than domestic demand, said.
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