IBRE calculates breakfast inflation in a one year period

Institutional
23 August 2013

A study conducted by FGV's Brazilian Institute of Economics (IBRE), at the request of newspaper O Globo, points out that, over the past 12 months, the increase in food prices affected several items that make up morning breakfast - remaining above the overall average of main indicators. For IBRE's economist, André Braz, low-income families are the most affected by the changes in the price of bread. He explains that the dollar increase is directly connected to this result, since Brazil is not self-sufficient in wheat production, and has to import it. Wheat products will continue rising due to the exchange rate issue and low supply. From one month to the next, these products may even stop increasing, but in the short term, they are expected to continue pushing, explained the researcher to the newspaper O Globo. Compared to other foods, such as milk, André indicates that in the coming months the volume of rainfall tends to increase - which reduces the increase of this product. Once it starts to rain more in pasture areas, cattle farmers do not need to invest so much in food for the animals. With the cattle grazing naturally and producing milk, the cost eventually goes down. Overall, eight of the eleven selected products in the survey showed an increase above the average. However, coffee powder and sugar prices remained low, mitigating the pressure on the morning breakfast.

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