Rio,8/12/2003(Agência Brasil-ABr) – According to the coordinator of Economic Analysis at the Getulio Vargas Foundation, Salomão Quadros, because of increases in charges for telephone and electricity services, the Consumer Price Index (IPC) rose, with the result that the first sample period for the month of August of the General Market Price Index (IGP-M) was 0%, compared to deflation of 0.17% during the last sample period.

The IPC increase was 0.10%, compared to deflation of 0.37%, in July. Quadros points out that all economic segments except clothing had price increases, which is seasonal and expected.

As for wholesale prices (IPA), they were practically stable. Quadros says that although the IPA remains negative (deflation), the natural tendency is for that to end.

In summary, Quadros declared that although the tendency is for the strength of deflation to weaken and prices rise, there should not be inflationary pressure. (AB)