São Paulo, November 18, 2002 (Agência Brasil - ABr) - Today, PT economic advisor Guido Mantega called for the replacement of the General Market Price Index (IGP-M) by another indicator less affected by the variation in the dollar. In his view, "the index is very imperfect, because it does not correctly measure inflation, which, in a situation like this (expensive dollar), moves inflation upwards." For him, the problem with the IGPM is that the index transmits inflation to a later period, when the cause no longer exists.

He suggests negotiations with the electric and telecommunications sectors for a change in the indicator. "We cannot allow that by themselves the electric sector and the so-called administered price sector generate 1% to 2% inflation carried over into next year." Mantega, who participated in the seminar Brazil under New Management, held at the American Chamber of Commerce of São Paulo, did not specify what model could substitute the IGPM. (DAS)