THE highest inflation for the months of August in the last 21 years was motivated by the increase in the prices of almost three out of four products that make up the IPCA (Extended National Consumer Price Index).
Of the total of 377 items that are part of the Brazilian consumption basket, 271 (71.9%) became more expensive, 17 (4.5%) were stable and 89 (23.6%) are cheaper compared to the month July, according to the indicator that measures inflation for families with income between one and 40 minimum wages.
The percentage is equivalent to the greater dissemination of the official price index in 2021, according to the IBGE (Brazilian Institute of Geography and Statistics). Until then, the most widespread increases had been registered in the months of January and April, when 65.5% of the products and services surveyed became more expensive.
“There is nothing that is not going up at the moment. We know that food, energy and fuel are pushing up prices, but things came out of the list that we were imagining for August inflation”, says André Braz, economist responsible for the inflation indexes. prices of Ibre/FGV (Brazilian Institute of Economics of Fundação Getulio Vargas).
For Rachel de Sá, Rico’s head of economics, the dissemination helps to analyze that inflation spread throughout the entire chain of goods and services in the Brazilian economy in the month. She classifies the move as negative for price dynamics as it raises the concerns of families and companies.
“We were seeing highs identified in the latest inflation data, especially on account of gasoline, electricity or pharmaceutical items. The August data showed that inflation started to spread in a more widespread way”, points out Rachel.
The diffusion made the IPCA jump 0.87% in August and record the biggest increase for the month since the year 2000. In the 12-month period, the variation in prices is close to 10%, level already surpassed in eight Brazilian capitals.
Braz explains that the rise is even more harmful to the poorest. “Low-income families always carry the piano, because what goes up in price are items that weigh more on their budget, such as food and electricity”, he points out.
The economist also points out that the rises in diesel and electricity cause a “contagion” in the economy’s price chain, which should keep inflation at a high level due to the adoption of the “Hydric Scarcity” tariff flag, which it will bring 6.78% increase in the average tariff for electricity bills. “This increase in the price of energy can contaminate the price of a series of products and services consumed on a daily basis”, he says.
Annual inflation already exceeds 10% in eight Brazilian capitals