Frosts can impact inflation and climate shocks have a negative effect, says Campos Neto

Frosts can impact inflation and climate shocks have a negative effect, says Campos Neto

Climatic shocks have negative effects on productivity and economic activity and possible frosts ahead could impact the inflation term, said this Wednesday the president of the central bank, Roberto Campos Neto.

In a seminar promoted by Bank of Brazil (BAAS3) and the Petrobras (PETR4), Campos Neto said that discussions about the environment and sustainability are linked to monetary policy.

“I was having an inflation meeting and I was talking about the frost that is coming, what impact this could have on food and short-term inflation,” he said. “Several recent climate shocks have negative impacts, heat waves, frosts, droughts.”

At the event, Campos Neto was still opposed to ideas of creating a tax on carbon emissions.

“I hear a lot about a tax of carbon, in some cases it seems justifiable, but we believe that the market price is always the best allocator of resources in the economy”, he said.

Source: Reuters

Related post

Central Bank raises growth forecast to 1.7% and sees inflation of almost 9% in 2022

Central Bank raises growth forecast to 1.7% and sees…

BC saw positive surprises for GDP in the first half of the year, but sees deceleration in the second half O…
The ‘hidden inflation’ of everyday products that should affect your pocket with fuel increase

The ‘hidden inflation’ of everyday products that should affect…

The increase of 5.18% in the liter of gasoline and 14.26% in the value of diesel does not only impact vehicle…
If diesel is lacking, food production, inflation, exports and GDP will worsen

If diesel is lacking, food production, inflation, exports and…

The shortage of diesel oil in the coming months, if it actually occurs, puts the entire economy of Brazil at risk.…

Leave a Reply

Your email address will not be published.