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There is little doubt that lower inflation has helped to improve the lives of many of Brazil's poorer citizens. In fact, much of the groundwork for this greater economic stability began before this government came to power.

Welfare support programmes such as Bolsa Familia and increases in the minimum wage have also made a difference. The government has further plans to raise the country's minimum wage another 7% in April 2008, from 370 reais a month ($193; £96) to 400 reais ($207; £104).

In a speech this month, marking Brazil's independence, President Luiz Inacio Lula da Silva said the country was experiencing a movement of social integration of an intensity never seen before.

"Poverty is declining, the president said. "In recent years, seven million Brazilians have joined the middle class."

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