Rising oil should inflate other products, says economist

Since the beginning of the conflict between Russia and Ukraine, the price of a barrel of oil has fluctuated a lot, causing Petrobras to make an upward revision of the prices of LPG, gasoline and diesel.

However, economist and researcher at FGV Ibre André Braz told CNN Moneythis Tuesday (5), that it is not only oil derivatives that should be impacted by variations in the commodity.

“Among petroleum derivatives, there are products whose price is not controlled and which follow the laws of the market. They can also introduce readjustment and thus raise their prices,” he said.

According to the FGV researcher, these increases are already taking place in several sectors of the Brazilian economy.

“Several segments of economic activity, such as the packaging sector, civil construction, the automobile industry and others, can already see an increase in the price of their raw materials, due to the behavior of the price of oil”, he pointed out.

Text published by Fabricio Julião

Source: CNN Brasil

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