HALISTER1: Santander Sees Notable Impact on June CPI From Petrobras, Aneel

Santander Sees Notable Impact on June CPI From Petrobras, Aneel

(Bloomberg) -- The announcement of fuel price reduction from Petrobras and Aneel’s decision on green flag might have a “notable impact” on June’s CPI, according to a report from Santander analysts, including Tatiana Pionheiro, that expects a deflation of 0.07%.
  • Gasoline and diesel prices reductions were announced last Thursday by Petrobras; the fourth gasoline price adjustment in 2017 and the fifth for diesel, analysts say
  • “For the IPCA, gasoline is more important than diesel, as its weighting is 3.85% (the total impact of -6 basis points in June), while diesel weighs 0.14% (total impact of less than -0.5 basis points)”
    • “We expect a lower pass-through for gasoline and diesel prices in June, thus, both tend to decrease by 1.5%”
  • Brazil’s Electric Regulator, known as Aneel, announced last Friday Green Flag for June electricity prices, from Red in May
    • “For IPCA, we expect a decrease of 6.3% in the electricity tariff in June with a total impact of -23 bps”
  • NOTE: IBGE to announce June data of IPCA on July 7
To contact the reporter on this story: Leonardo Lara in Sao Paulo at llara1@bloomberg.net To contact the editors responsible for this story: Daniela Milanese at dmilanese@bloomberg.net Giulia Camillo

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