Deflation is felt in all income brackets in August, points out Ipea

All income brackets registered deflation in August, according to data released this Tuesday (13) by the Institute of Applied Economic Research (Ipea).

While for low-income families, the indicator was -0.12%, Brazilians with high incomes felt a variation of -0.51%.

For high- and upper-middle income families, the impact comes mainly from the transport group, with drops of 11.6% in gasoline, 8.7% in ethanol and 12.1% in airline tickets.

The weight of these items is greater in the consumption basket of these groups.

On the other hand, of the increases, the richest were affected by the growth in personal expenses, especially 0.59% in personal services and 1.2% in tobacco.

The 1.3% reduction in electricity tariffs brought relief, especially for very low and low income families.

According to Ipea, deflation was not greater for the poorest due to the 2.7% increase in personal hygiene items.

The survey by the Institute of Applied Economic Research shows that the decline in inflation in the country also had a relevant impact on the communication category, with a decrease of 6.7% in fixed telephony plans and 2.7% in mobile telephony.

In addition, the deceleration of food and beverages contributed, with emphasis on the declines in cereals (-1.6%), tubers (-5.9%), meats (-0.53%) and oils (-3.4 %).

august inflation

• Very low income: -0.12%
• Low income: -0.24%
• Middle-low income: -0.40%
• Average income: -0.44%
• Upper middle income: -0.47%
• High income: -0.51%

With the August result, in the 12-month period, all income classes recorded an improvement in inflation, compared to July.

The lowest rate is registered in upper-middle income families, with 8.2%, and the highest in very low income, with 9.2%.

For the poorest Brazilians, one-year inflation is especially affected by food and beverages, especially by increases in flour and pasta (19.9%), tubers (18.9%), vegetables (15.7%), fruits (32%), milk and dairy products (39.2%), poultry and eggs (16.2%), baked goods (18.3%) and oils and fats (19.3%).

In the case of the richest, the impact comes from transport, with an increase, in the accumulated of 12 months, of 43.9% in transport by apps, 74.9% in air tickets, 43.6% in vehicle insurance and 15, 1% on new cars.

Inflation in the 12-month period

• Very low income: 9.2%
• Low income: 8.9%
• Lower middle income: 8.6%
• Average income: 8.6%
• Upper middle income: 8.2%
• High income: 9.1%