Brazil’s Ibovespa is in the red on the resumption of fuel taxes

The Ibovespa opened the week down amid the announcement of the resumption of federal taxes on alcohol and gasoline.

On Monday (27), the main index of the Brazilian Stock Exchange (B3) closed, quoted at less than 106,000 points.

In the same trading session, the dollar closed at R$5.20, up 0.16%.

On Monday, the government announced the increase of taxes on fuel to collect around R$29 billion by 2023.

According to the Ministry of Finance, oil-based fuels, such as gasoline, will be more expensive.

With the tax hike, prices tend to rise, putting even more pressure on inflation in 2023.

And the market has constantly increased the projection for the rise in the cost of living this year.

Every week, the Focus Report releases a projection for inflation as measured by the IPCA, based on a survey done by the Central Bank in the financial market.

Today, for the 11th consecutive week, the document brought an upward revision to the estimate.

Now the forecast for the increase in 2023 has risen to 5.9%.

While the Ibovespa closed in decline with the increase in taxes in Brazil, the leading indicators of the North American market registered a rise.

Dow Jones, S&P 500, and Nasdaq were up 0.2%, 0.3%, and 0.6%, respectively.

With information from Revista Oeste