Inflation burden now lighter for the poorest in Brazil

Inflation indexes are critical economic measures. But how each household (or group) experiences inflation can vary greatly depending on what they eat, how they commute, where they live, where they go on holiday (and how often), and other spending habits.

To provide a better context of how price fluctuations affect each of Brazil’s income brackets, the Institute for Applied Economic Research (Ipea) publishes a monthly assessment of inflation by household purchasing power.

When the pandemic hit, food inflation skyrocketed, taking a disproportionate toll on low-income households. For most of the Covid crisis, poor households felt inflation the most. Now that food prices have fallen for four consecutive months, the burden of inflation is falling more heavily on the rich — as high-income households feel the...