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Bolsonaro Seeks Alternative Solution To Stabilize Fuel Prices

BRAZIL
  • President Bolsonaro is reported to have backtracked on a bill to reduce fuel prices. Dispute in the government on how to tackle the situation, is dominating local news; Valor newspaper reported Bolsonaro told his ministers to stop talking about the bill that was aimed at cutting federal taxes on diesel and cooking gas.
    • Govt now considers that the best alternative is to create a fund to stabilize prices and avoid passing on the rise of international oil prices to the domestic market: Valor
  • Separately, Former President Luiz Inacio Lula da Silva grants interview to Para state radio, 12pm local.
  • Data released this morning:
    • Inflation as measured by the IGP-M index +1.82% M/m vs 1.98% Estimate.
    • Brazil Jobless Rate Falls to 11.6% in 3-Month Period Through November
    • Brazil December Bank Lending Rises 1.9% M/m to 4,684b Reais
    • Brazil personal loan default rate was 4.4% in Dec. (BBG)

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