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PBR » Topics » Inflation and government measures to curb inflation may contribute significantly to economic uncertainty in Brazil and to heightened volatility in the Brazilian securities markets and, consequently, may adversely affect the market value of our securities,This excerpt taken from the PBR 20-F filed May 22, 2009. Inflation and
government measures to curb inflation may contribute
significantly to economic uncertainty in Brazil and to
heightened volatility in the Brazilian securities markets and,
consequently, may adversely affect the market value of our
securities and financial condition.
Our principal market is Brazil, which has, in the past,
periodically experienced extremely high rates of inflation.
Inflation, along with governmental measures to combat inflation
and public speculation about possible future measures, has had
significant negative effects on the Brazilian economy. The
annual rates of inflation have been historically high in Brazil
prior to 1995 and Brazil experienced hyperinflation in the past.
As measured by the National Consumer Price Index (Índice
Nacional de Preços ao Consumidor Amplo, or IPCA),
Brazil had annual rates of inflation of 3.14% in 2006, 4.46% in
2007 and 5.90% in 2008. Considering the historically high rates
of inflation, Brazil may experience higher levels of inflation
in the future. The lower levels of inflation experienced since
1995 may not continue. Future governmental actions,
including actions to adjust the value of the real, could
trigger increases in inflation, which may adversely affect our
financial condition.
This excerpt taken from the PBR 20-F filed Jun 30, 2005. Inflation and government measures to curb inflation may contribute significantly to economic uncertainty in Brazil and to heightened volatility in the Brazilian securities markets and, consequently, may adversely affect the market value of our securities, financial condition and results of operations.
Our principal market is Brazil, which has, in the past, periodically experienced extremely high rates of inflation. Inflation, along with recent governmental measures to combat inflation and public speculation about possible future measures, has had significant negative effects on the Brazilian economy. The annual rates of inflation, as measured by the National Consumer Price Index (Índice Nacional de Preços ao Consumidor), have decreased from 2,489.1% in 1993 to 929.3% in 1994 and to 5.3% in 2000. The same index increased to 9.4% during 2001 and to 14.7% in 2002, before decreasing to 10.4% in 2003 and to 6.1% in 2004.
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Table of ContentsBrazil may experience high levels of inflation in the future. The lower levels of inflation experienced since 1994 may not continue. Future governmental actions, including actions to adjust the value of the Real, could trigger increases in inflation, which may adversely affect our results of operations and financial condition.
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