LatinNews Daily - 09 July 2024

*Brazil’s state-controlled oil company Petrobras has announced that, starting today (9 July), it will increase its prices of gasoline and liquefied petroleum gas (LPG) for distributors. The average price of gasoline will be raised to R$3.01 (US$0.55) per litre, up R$0.20 per litre. The average price of LPG will be R$34.70 per cylinder (one cylinder = 13kg), marking an increase of R$3.10 per cylinder. The last price adjustment was in October last year, when prices were lowered. The last time the oil giant increased its prices was in August last year. The company did not provide an explanation for the price hike in its announcement, but reports in the national press have cited economists as suggesting that the decision to raise prices could have been influenced by several international factors, such as persistently high interest rates in the US as well as a decrease in the value of the Brazilian real against the dollar. Petrobras’ latest price adjustment is also expected to contribute to further increases of annual inflation forecasts. Private sector analysts and economists consulted by the central bank (BCB) have released their latest forecast, published in the BCB’s weekly Focus bulletin, projecting 2024 to close the year at 4.02% annual inflation; the ninth consecutive week that the Focus bulletin’s inflation forecast was raised.