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Families with monthly income of R$ 9 thousand or more were the ones that most felt the price drop in the month; expectation is that further reductions will be recorded in the coming months
By Jovem Pan 09/14/2022 08:42 - Updated 09/14/2022 08:43
Real banknotes laid out on white surface
Expert says inflation is expected to be close to 5% in the 12-month period in 2023
According to the Institute for Applied Economic Research (IPEA), deflation in August was widespread across income brackets. The National Broad Consumer Price Index, the country's official inflation, measured by the Brazilian Institute of Geography and Statistics (IBGE), had its second consecutive deflation in August, with a 0.36% drop. In July, the IPCA had been -0.68%, the lowest rate of the entire historical series, which began in 1980. However, the behavior of deflation is different according to income brackets. So far, the wealthiest families have felt the most impact of the fall. In the month of August, for example, also according to IPEA, families with a monthly income of R$ 9 thousand or more had a deflation of 0.52%, while the poorest families, with an income of up to R$ 900 per month, they saw a price drop of just 0.12%. The difference is justified by the weight that prices have on families' budgets. At this moment, further declines in inflation are expected in Brazil. At first, the drops were a reflection of the reduction in fuel prices, announced by Petrobras, and essential items. Now, the expectation is about the fall in the prices of food and cooking gas, also already announced by the state oil company. “The IPCA, which is the official inflation, closes this year between 6.5% and 7%, tending to fall even further, if we have new drops in fuel prices, and may drop to 6% in the accumulated in December. On the other hand, for next year, this inflation drops by 6%, and may even go within the target, getting closer to 5% in the accumulated 12 months”, says professor Gilberto Braga, from IBMEC.


Mr. Alessandro Jacob speaking about Brazilian Law on "International Bar Association" conference

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