Inflation for low-income families reaches 10.63%, says Fipe index

The Economic Research Institute Foundation (Fipe) launched this Wednesday (10) the IPC FX, an index that measures inflation by income bracket. In the accumulated result for the year of October 2020 until the same month in 2021, the number reached an accumulated of 10.63% for families with 1 to 3 minimum wages.

The impact is considerably greater, according to the coordinator of the IPC at Fipe, Guilherme Moreira, on low-income families.

“The loss of purchasing power is much more cruel for low-income families, inflation of 10% a year means going hungry, not consuming protein, the indicators seek to measure more accurately the impacts of this high inflation”, he explained, in an interview with CNN Radio.

The pressure on the less favored class is justified by the rise in essential sectors, such as housing, electricity and food. “They represent a lot for these families, in the 12-month period, inflation was 1 percentage point higher than for those with high incomes, 10.6% loss of purchasing power is a complicated situation.”

“The family looks at the price on the shelves, not the variation in inflation, the index should lose strength in the coming periods, but the price on the shelves is unlikely to fall, perhaps they will stop rising, but prices before the pandemic will not return” , completed.

Guilherme believes that the reversal of the inflation scenario has only one possible path: “In my opinion, the only viable way out is the income side, returning jobs and wages to compensate for the loss of purchasing power, is the most efficient way out.”