By Lise Alves, Senior Contributing Reporter
SÃO PAULO, BRAZIL – This week the government announced it had authorized the increase of gasoline and diesel fuel prices at Petrobras’ refineries. The price increase will vary from four percent for diesel to six percent for gasoline. The increase in fuel prices, say analysts, is likely to put more burden on an already pressured inflation.
“That (increase in fuel prices) will dash hopes that inflation had peaked following a surge over the first half of this year,” according to Neil Shearing, Chief Emerging Markets Economist at Capital Economics.