Recovery of the Economy

Reduction in food and transport prices influenced the result of the month

Inflation in November was lower for Brazilians with lower incomes. Elaborated by the Institute of Applied Economic Research (Ipea), the Inflation Indicator by Income Band for the month registered a 0.07% increase for very low income families, reaching 1.8% in the accumulated of the year.

For the richest, the rise was 0.34% in November, with accumulated growth of 3.2% in the year. The slowdown in inflation has been felt by all income groups in recent months, the institute says.

"In fact, the significant deceleration in the price of food throughout the year is the main focus of inflationary relief in 2017, especially for the lower income classes," says Maria Andreia Parente Lameiras, a researcher at the Ipea Conjuncture Group.

According to the survey, food accounts for most of the poorest people's spending. As food prices fell, inflation for this population fell by 0.16 percentage points. For people with high incomes, the retraction was 0.05 pp. It was also a relief for the poorest to reduce spending on urban bus fares (down 0.6%) and interstate (1.6%). Already  for classes with higher purchasing power, in which the spent fuel is much higher, the high of 2.9% in gasoline prices caused the contribution of the transport group was positive.

Source: Government of Brazil, with information from Ipea