Inflation erodes the new BRL 600 Aid Brazil

Even with the increase in aid to R$ 600, Brazilians suffer from the rise in prices. Know more.

Estimated reading time: 3 minutes

The new Auxílio Brasil in the amount of R$ 600 is already considered outdated due to high inflation. Brazilians have increasingly lost their purchasing power. According to a survey by the IBGE (Brazilian Institute of Geography and Statistics), the IPCA (Extended Consumer Price Index), the official measure of inflation, grew by more than 20% in two years.

Payments start from the 9th of August and continue until December of this year. The addition of R$ 200 was approved through the PEC (Proposed Amendment to the Constitution) which also creates new social programs and has a cost of R$ 41 billion.

By way of comparison, the Emergency Aid paid in 2020 in the same amount was used as a basis. To be able to purchase the same products, R$ 725 would be needed at the current moment. In other words, the beneficiary of Auxílio Brasil would need R$ 125 more to make a similar purchase. The calculation was made by economist and financial planner Bruno Mori.

This year, the inflation rate increased by 5.49%. In relation to the last 12 months, the percentage reaches 11.89%.

Rise in food prices

Most responsible for the commitment of Auxílio Brasil are food prices, which have risen significantly. The basic food basket, for example, has an average price of R$ 663 in the country, a value above the amount of the benefit.

In only 3 Brazilian capitals, João Pessoa, Salvador and Aracaju, it is possible to buy the complete basic food basket with Auxílio Brasil.

In the capital of São Paulo, the basic food basket rose 23.97%. In certain regions, the total price exceeded the value of a minimum wage (R$ 1,212).

And the scenario continues to get worse. According to the IBGE, the IPCA average for the month of July was above expectations. The Food and Beverages group grew 1.16% and Clothing, also considered ideal, increased 1.39%.

Auxílio Brasil waiting line

The proposal approved by the Federal Government intends to end the program’s waiting list. However, data presented by the National Confederation of Municipalities (CNM) indicate that more than 2 million Brazilians are waiting. This number exceeds government estimates.

The citizens in the queue are those who meet all the requirements required by the program but have not yet received any installment due to lack of government funding. In addition, the Ministry of Citizenship announced that around 350,000 new families join the queue each month.

With rising inflation, this number is likely to remain at high levels.

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Image: rafapress/shutterstock.com

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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