According to the most recent survey by the Institute of Applied Economic Research (IPEA), there was a drop in the cost of living for all income groups in the month of August. The agency published the survey on Tuesday the 13th. It was the second month in a row with widespread deflation, a fact that had not occurred since July 2010.
The Ipea Inflation Indicator by Income Group “recorded deflation for all income groups, with variations between -0.51% for the high-income segment and -0.12% for the very low-income class”, informed the institute in note. Thus, in the accumulated period between January and August, inflation rates ranged from 4.11% (high average income) to 4.94% (very low income).
In the previous month, the cost of living dropped 0.34% for the very low-income class and 0.42% for the very high-income population. According to the data, the peak occurred for those in the middle income bracket: a reduction of 0.85%.
In August 2021, the scenario was of an increase in the cost of living in all brackets. The worst result of that period was for very low income, with inflation of 0.91%.
Transport leads cost of living drop
According to the survey data, the drop in prices in the transport sector led to an improvement in the cost of living in August. The reduction in this segment ranged from -0.42% (very low income) to -0.96% (very high income). In June, President Jair Bolsonaro (PL) sanctioned the law that limits the Tax on the Circulation of Goods and Services (ICMS) on diesel, gasoline, electricity, communications and public transport..