Brasília, 12/26/2003 (Agência Brasil - ABr) - The Monetary Policy Committee (Copom) estimates that next year gasoline prices will rise 9.5%, mainly due to an increase in the Cide tax (Contribuição de Intervenção no Domínio Econômico) on fuels which is a part of the recently approved tax reform.

Copom points out that this year the increase in fuel prices was only 0.09% (although so-called kitchen gas prices rose more - up 3.7%).

In the minutes of its last meeting of the year, Copom said the situation in the country was favorable to looser monetary controls and new reductions in interest rates. And cited clear indications of price stability as a result of "inflation stability." (AB)