SAO PAULO, Feb 3 (Reuters) - Brazilian President Luiz Inacio Lula da Silva stated in a written message to Congress on Monday that he anticipates a further easing of inflation in Brazil this year, approaching the central bank's 3% target by mid-2026.

In 2025, inflation reduction is expected to persist, bolstered by the anticipated positive performance in grain harvests, electricity tariffs, and fuel prices, the message stated.

The deceleration in prices is projected to benefit from the widening interest rate differential between Brazil and other economies, which is likely to positively impact exchange-rate dynamics, as mentioned in the document.

Last week, the Brazilian central bank increased interest rates by 100 basis points and hinted at another hike in March. On Monday, the Brazilian real achieved its biggest gain against the U.S. dollar in 20 years.

Lula's message underscored that the Brazilian government's spending review will persist in 2025, remaining steadfast in its commitment to the structural construction of fiscal robustness.