One more reason not to lose sleep over the surge in oil prices is that, unlike the rises in the 1970s, it has not occurred against the backdrop of general commodity-price inflation and globalexcessdemand.
Meanwhile, Rousseff and Finance Minister Guido Mantega are sticking to their guns when it comes to their inflation shoot-out, arguing that excessglobal liquidity is a key, if not main culprit, rather than excess local demand.