Clipping of news on Brazilian Culture, Law and Citizenship
01/16/2013
This article was translated by an automatic translation system, and was therefore not reviewed by people.
To reduce the impact on inflation early in the year, local governments of the two largest cities in the country meet the request of the Minister Mantega
RIO and SAO PAULO - With the adjustment in fuel prices approaching the postponement of the increase in bus fares can be output from the Ministry of Finance to reduce negative impacts on inflation at the beginning of the year. The Minister Guido Mantega asked the municipalities of São Paulo and Rio to postpone adjustments and was serviced. The prices of the two capitals have the largest weight in the IPCA inflation index officer that target the goals pursued by the Central Bank (BC).
For economists, the delay of the high prices, the government wants to prevent the IPCA January reaches the psychological mark of 1%, which could affect market expectations for inflation this year. The adjustment in fuel should occur next week as the state revealed yesterday.
The postponement of adjustments passages in Sao Paulo and Rio, as anticipated yesterday the newspaper Folha de S. Paul leaves after a high of 0.13 percentage point in the IPCA, according to economist André Braz, the Brazilian Institute of Economics, Getulio Vargas Foundation (Ibre / FGV). For the calculations, we considered increases 11.84% in São Paulo (cumulative inflation since the last adjustment) and 5.5% in Rio, as was already announced.
In São Paulo, the passages should be high for June, according to Mayor Fernando Haddad. In an interview with Radio Estadão, Haddad said, to ask for the postponement, Mantega pondered the amount of expenses that accumulate in the first months of the year, which influence inflation forecasts. "All readjustments occur in the same month.'s Too much for the administration earlier this year and this affects market expectations," explained Haddad, adding that the city intends to increase below inflation. The last adjustment was in January 2011, when the passage from R$ 2.70 to R$ 3.
In Rio, the adjustment was scheduled for Jan. 2. According to a decree published on December 19, the rate would rise to R$ 2.90. The office of Mayor Eduardo Paes confirmed the request Mantega. The increase was delayed by 1. January, when another annulled the decree of December 19. No new date for the adjustment.
The concession agreement between the city of Rio and the companies that operate bus lines provides annual adjustment, always the first day of each year. The River Shuttle, a consortium of oil companies was notified of the postponement in the week after Christmas. In a statement, the organization said that "trust relationships that provided contract will be fulfilled."
For an executive at a financial institution in New York, who declined to be identified, the request to postpone the adjustments affect the image of the country abroad. "Any business that applies resources to expand its plant facilities can think: 'Yesterday was the electric sector that suffered vigorous government action, occurred today with the transportation companies. And when my turn come?'" He said.
"There is a clear objective of the government to advance a process of direct control of prices," said the former director of the BC Alexandre Schwartsman, a partner at Schwartsman & Associates.
(Reporting by Vinicius Neder, Fernanda Nunes, Ricardo Leopoldo and Daiene Cardoso)
Source: ESP - SP
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This article was translated by an automatic translation system, and was therefore not reviewed by people.