Agência Brasil
Rio – The coordinator of Economic Analysis at the Brazilian Institute of Economy (IBRE) of the Getulio Vargas Foundation (FGV), Salomão Quadros, says he does not expect the oscillations in international petroleum prices to have an effect on Brazilian inflation any time in the near future. Yesterday (02) petroleum prices reached US$44 a barrel.
"Record high prices, followed by sharp drops, occur in times of uncertainty. There is no clear reason for prices to rise further, except because of speculation due to the crisis in Russia, which could interrupt production, or terrorism, which causes even more uncertainty," explained Quadros, adding that he did not foresee any additional pressure on prices.
Quadros pointed out that although Brazilian fuel prices need an upward adjustment, the price increase could take place gradually. The problem at the moment, he said, is that telephone and electricity prices recently rose, making it better for any other price increases to take place later.
