Brazilian consumers have been affected by increased prices of basic food supplies since the Covid-19 pandemic reached the country. Calculations by Fundação Getulio Vargas’ Brazilian Institute of Economics (FGV IBRE) indicate that key food products have gone up 1.8% in price since the first cases appeared. Prices fell 0.06% between February 8 and March 7, before rising 1.86% between March 23 and April 22. Beans have gone up around 10% in price. (Brown bean prices went from -1.45% to 8.62%, while black bean prices went from -2.73% to 8.13%.)

According to André Braz, an economist and FGV IBRE’s consumer price index coordinator, demand for supermarket products has grown since families have been confined at home. “Families are now eating all their meals at home – breakfast, lunch and dinner. And ordering take outs is more expensive. So, the best option is to shop at supermarkets, even if you pay a little more at this time,” he explained.

Other factors, such as seasonal effects and the depreciation of the Brazilian real, have also helped to raise prices, according to Braz. “The bean harvest was poor, and that is why prices increased so much. Eggs had already gone up 7.21% in price and they then increased another 6.57%, due to higher consumption during Lent. The exchange rate devaluation also contributed to higher commodity prices in local currency terms. If wheat becomes more expensive, for example, this increases the price of products such as bread rolls,” he said.