Consumer prices: July records a 0,68% drop, but spending on food remains high

Consumer prices in Brazil showed a monthly reduction of 0,68% in July, but this drop does not alleviate the inflationary crisis that is impacting the country's economy.

Posted by

João Caminoto

August 9, 2022 12:39

In July, the index that measures Brazil's official inflation, the IPCA (Extended National Consumer Price Index), had the biggest retraction since 1980: it fell 0,68%. This drop in prices is called deflation. But the phenomenon happened, mainly, because fuel prices fell in the same period (-14,15%), pulling the IPCA down.

The housing sector was also responsible for the general drop in prices, but food and beverages increased by 1,3%, mainly impacting low-income people. (Folha de S.Paulo(I.e.)

Understand in this G1 report why the July price reduction does not represent a general relief for Brazilians' pockets.

The accumulated value for the year – since July 2021 – was 10,07%, as announced this Tuesday (09) by the Brazilian Institute of Geography and Statistics (IBGE). For 11 consecutive months, the annual v indexariation in prices is on the rise, which has not occurred since 2003 in Brazil.

Curto Curatorship

What is deflation? Is it good or bad for the economy? (UOL)

This post was last modified on August 10, 2022 16:15 pm

João Caminoto

Journalist with more than 30 years of experience, I held various positions - from reporter to international correspondent to editorial director - in several publications, such as Estadão, Broadcast, Época, BBC, Veja and Folha. I feel privileged to have embraced this profession. I am in love with my family and Corinthians.