In January, average cost of basic foodstuffs fell in seven out of eight surveyed cities
The average cost of basic foodstuffs fell in January 2023, in relation to the previous month, in seven of the eight state capitals analyzed monthly by the HORUS & FGV IBRE Basic Consumption Platform. The declines varied from 9.1% to 0.1%. In the only city where prices rose, Fortaleza, the increase was 0.6%.
Curitiba and Belo Horizonte experienced the biggest declines (9.1% and 6.2%, respectively). Despite a monthly decline, Rio de Janeiro continues to have the most expensive set of basic foodstuffs (R$874.53), followed by Sao Paulo (R$850.68) and Fortaleza (R$773.27). On the other hand, Belo Horizonte (R$669.20), Manaus (R$682.64) and Salvador (R$722.63) recorded the lowest prices.
Of the 18 items in the set of basic foodstuffs, only rice went up in price in all cities. Other products that experienced price increases in several cities include fruits, cassava flour and beans, as shown on the tables below. The increase in the price of rice, which happened in all cities, was caused by higher fertilizer prices and higher foreign demand. Vegetables and fruits, especially potatoes, bananas, apples and oranges, also presented significant increases, due to heavy rainfall in several parts of the country. Cassava flour continued on an upward trajectory, caused by weather conditions and a reduction in planted area. Bread experienced the sharpest drop in average price in almost all the surveyed cities.
The biggest decline in the price of bread happened in Curitiba (18.2%), followed by Salvador (8.7%). This was due to the record wheat harvest, which dampened the price of flour and bread. Other products that fell in price in nearly all the cities include milk, chicken, sugar and oil. In the last six months, the average price of basic foodstuffs fell 6.2% in Salvador and increased 6.1% in Brasilia. Looking at the expanded set of basic items, which includes drinks, hygiene products and cleaning items, as well as food, average prices increased in two cities and decreased in six.
The cities with the highest prices for the expanded set of basic items are Sao Paulo (R$1,869.56) and Rio de Janeiro (R$1,846.83). The biggest rises in the average prices of the expanded set of basic items were recorded in Fortaleza (0.4%) and Rio de Janeiro (0.1%). On the other hand, the biggest drops were recorded in Belo Horizonte and Salvador (5.4% and 4.4%, respectively).
Of the 33 products in the expanded set of basic items, products that went up in price in several cities include olive oil, detergent, instant noodles, beer and chocolate, as can be seen in the tables below. In January 2023, in general, there was a slowdown in the prices of some foodstuffs and other essential items, especially among products that experienced high price rises in 2022, such as UHT milk, bread rolls and soybean oil.
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