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.

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.

BRASÍLIA (Reuters) - Brazilian President Luiz Inácio Lula da Silva is bracing for another two years of struggle with the nation’s Congress, as lawmakers convene on Saturday to potentially elect leaders to both the House and Senate who have promised to continue exerting tight control of an overstretched federal budget.

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.

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.