The Minister of Economy, Paulo Guedes, said this Friday (11) that the crisis in the supply of fertilizers, in the medium term, should have some impact on food prices.
“In the very short term, I wouldn’t see any reason to go up so fast, the crop is already there and has been planted”, he pondered.
Guedes participated this Friday (11) in the launch of the National Fertilizer Plan and stated that, with the war prolonging, the concern will be greater and will require “additional fiscal efforts”.
“The price of oil takes everything. Our hope is that the war ends quickly, that would be for the best.”
In a press conference at the Planalto Palace after the event, Guedes again predicted the deceleration of prices next year.
“Inflation is monetary and fiscal policy. The tax is zero. Currency is in place so must fall [a inflação]. What happens is that when there is another shock of this type, fertilizers, oil, it is a change in relative prices. Fertilizer prices go up, oil prices go up a little, but other prices don’t go up, they even fall. And inflation goes down. That’s what we expect”, said Guedes.
Guedes also stated that Brazil should, in the medium term, end the Tax on Industrialized Products (IPI) as a way to “deepen the production chain”.
“What we are doing is improving the business environment, reducing taxes. In the medium term, it is to end the IPI to allow this deepening of the Brazilian production chain”, said the minister.
Source: CNN Brasil
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