Earlier this week, the Brazilian Institute of Geography and Statistics (IBGE) published Brazil’s official inflation figures for July — 0.96 percent — taking 12-month inflation to 8.99 percent, almost 4 percentage points above the upper limit of the government’s target band.
But, to paraphrase Tolstoy, each income bracket feels rampant inflation in its own way. A recent analysis by the Institute of Applied Economic Research (Ipea) shows that the poorer the family, the higher the inflation they experienced. The poorest families have been disproportionately affected by a spike in the price of utilities, food products, and bottled gas.
High-income families felt the pinch on prices for fuel, airline tickets, and ride-hailing apps. However, these households benefited from a 1.4-percent deflation in healthcare plan prices.