Clipping of news on Brazilian Culture, Law and Citizenship
01/16/2013
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Correction 15% claimed by Petrobras will not be honored by the government to avoid impact on inflation
Brasilia and Rio - Once the mission to close 2012 with inflation within the target-even above the center of 4.5% - since the government prepares an adjustment to the prices of petrol and diesel. According to experts of the economic team, the adjustment of gasoline can be between 7% and 9%, the percentage gap in product pricing. The high diesel would be about 4%.
The rising price of gasoline will be below the 15% that have been ordered by Petrobras. That's because the government is very concerned with the impact that the increase may have on the price indices. The state oil had been pressing for a readjustment in fuel value since last year, but the central bank feared the behavior of inflation, which ended up closing the year at 5.84%. As anticipated GLOBE, was precisely why the correction was postponed to the beginning of this year.
Experts estimate that an adjustment of 7% of the gasoline in refineries, plus the increase in bus fares in Rio (5.4%) and São Paulo (estimated at 11%) - which has been barred by the federal government - , would have an impact on inflation in January of 0.19 percentage point.
Inflation may rise to 6.3%
Thus, the projection of LCA Consultores for January IPCA would rise from 0.86% to 1.05%. And the cumulative inflation over the past 12 months through January would at 6.35%, very close to the official target ceiling.
Even with the adjustment of the buses - already effected in Belo Horizonte (5.66%), Fortaleza (10%) and Recife (5.53%) - and gasoline, LCA does not expect inflation to go beyond the target ceiling throughout the year and projected high of 5.40% for 2013.
- There are many sources of inflationary pressure in January. But of course postpone resetting the bus embeds a risk, which is not small, there is climate problem and there is a stronger high food prices - said economist Fabio Romao, the LCA.
When I return from holiday on Friday, the finance minister, Guido Mantega, will close the value of higher fuel and assess how far his team can be taken to try to minimize the effects on prices.
One option would be to raise the percentage of alcohol in gasoline mixture of 20% to 25%. But this measure would only be effective from the beginning of the harvest of cane sugar in April, when the price of ethanol tends to fall. There is also the possibility of reducing taxes on fuel distribution.
Main weapon that had been used by the government to contain the rise of gasoline, the contribution of Intervention on the Economic Domain (CIDE) has been zeroed to compensate for an increase in June last year. Therefore, even if the government adopts some compensation, high fuel will end up being reflected at the pump. (collaborated Daniel Haidar)
Source: The Globe - Online
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This article was translated by an automatic translation system, and was therefore not reviewed by people.