Brazil President Luiz Inacio Lula da Silva is already staring down rising food prices, deepening investor skepticism and falling approval ratings. Now he’s getting another challenge: A change in congressional leadership that will test his ability to navigate the country’s conservative legislature.

Inflation in Brazil is expected to ease further this year and near the mid-point of the central bank's 3% target by mid-2026, President Luiz Inacio Lula da Silva said in a written message to Congress on Monday.

Brazilian President Lula da Silva faces a challenging political landscape as Congress elects leaders promising tight budget control. With declining approval and fiscal pressures, Lula aims to fulfill electoral promises amidst a strong legislature.

Brazil’s House and Senate elected new leaders on Saturday who promised independence from the administration of President Luiz Inacio Lula da Silva during their two-year terms, which will be the final stretch of Lula’s presidency.