Economy Minister Paulo Guedes questioned this Wednesday (25) what would be the problem of “energy becoming a little more expensive because it rained less”. According to the minister, the country managed to organize itself in the midst of the pandemic, so there would be no reason to “be afraid”.
The rise in energy prices is a consequence of the water crisis that affects the reservoirs of hydroelectric plants. Brazil faces the worst drought in the last 91 years and on Wednesday (25) the federal government announced measures to encourage the reduction of electricity consumption in the country.
“If last year was chaos, we organized and crossed, why are we afraid now? What’s the problem now that energy will get a little more expensive because it rained less?”, Guedes said during the launch of the Parliamentary Front of the Entrepreneurship, in the Chamber of Deputies, this Wednesday (25).
Electricity exerted the greatest individual impact on the Extended National Consumer Price Index 15 (IPCA-15), released on Wednesday (25), accounting alone for 0.23 percentage points in the month’s index. And, according to Ana Flor’s blog, level 2 of the red tariff flag on the electricity bill should increase even more as of September.
For the minister, Brazil will “face this crisis”. According to Guedes, the lack of rain will cause “disruption”, which can lead to inflation a “little upward” and the Central Bank (BC) will have to “run a little” to contain the increase.
“We will have to face the problem of the water shock, this will cause disturbance, push inflation a little higher, BC has to run a little more behind inflation, but we are going to face this crisis.