Inflation slowed in August for lower-income families, but the poorest Brazilians still feel a greater impact from the price spike. This is indicated by a monthly study released this Wednesday (15) by Ipea (Institute for Applied Economic Research).
Five of the six income groups analyzed by the survey saw inflation slow from July to August.
Among families with a very low income, the variation in prices increased from 1.12% to 0.91%. Even with the deceleration, inflation accumulated in the 12 months until August reached 10.63% in this group — it was 10.05% until July.
Both the advance of 0.91% and the 10.63% are the largest in the survey. According to IPEA, very low-income families are those with a household income of less than R$1,808.79 per month.
In 12 months, the pocket of the poorest Brazilians was pressured especially by the advances of 16.6% in food at home, 21.1% in electricity, 31.7% in bottled gas and 5.6% in medicines.
The study highlights that, in accumulated terms, the inflation of the poorest continues to be “significantly above” that registered by the high-income class.
Among the richest, the advance in prices was 8.04% accumulated until last month. It is the smallest brand in the survey. The high-income group is formed by families with household income above R$ 17,764.49 per month.
“Some time ago, we imagined that the difference between the accumulated inflation of the poorest and that of the richest would narrow more as of June, July. This is not what we are seeing yet”, emphasizes Maria Andreia Parente Lameiras, planning and research technician at Ipea.
“Food, contrary to what was expected, once again impacted inflation, especially that of the poorest, and we could not imagine such a bad situation for electricity”, adds the researcher.
According to Ipea, the accumulated of the richest largely reflects the readjustments of 41.3% in fuels, 30.2% in airline tickets and 12.4% in electronic devices, in addition to the recent recovery in the prices of electronic services. recreation, whose 12-month high rose from 0.07% in January to 5.3% in August.
In the monthly cut, from July to August, inflation in the high-income bracket decelerated from 0.88% to 0.78%, the lowest in the survey.
Like very low-income families, the low-income segment (between R$1,808.79 and R$2,702.88) also recorded a 0.91% change in August, the highest in the monthly cut. In July, the result of this group had been 1.07%.
In lower-middle income, inflation was 0.90% in August, after the 1.01% mark in July. This range has household income between R$2,702.88 and R$4,506.47 per month.
According to IPEA, the food group was the one that contributed the most to inflation among families in the three lower-income segments in August. In the bands with higher earnings, the greatest impact came from the transport group.
In August, the only one of the six groups surveyed that saw inflation accelerate was the upper-middle income group. In comparison with July, the variation in this segment went from 0.78% to 0.85%. The upper-middle income is formed by families with household income between R$8,956.26 and R$17,764.49 per month.
In Maria Andreia’s view, inflation for the poorest tends to show some relief by the end of the year in the 12-month accumulated period. The loss of breath, the researcher emphasizes, “should not be too great”. The perspective of deceleration is associated, in part, with a statistical effect. Is that, in the final stretch of 2020, food prices had a strong increase.
For the richest, says Maria Andreia, accumulated inflation may gain strength in the coming months. The projection is based on the recovery of the services sector, which has a greater weight in consumption among families with higher incomes.
“It’s a picture of inflationary pressure, which is still greater for the lower income bracket, and the prospects are not very encouraging for the end of the year”, points out the technician.