When Brazil’s current inflationary process began, the poor were hit the hardest — as food products and fuels were the first to get more expensive. But other income brackets are feeling the pinch now, too. A report by the Institute for Applied Economic Research (Ipea) shows that no economic class managed to escape greater pressure on prices last month.
The biggest hike was felt by Brazil’s highest income bracket, which saw prices rise 1.07 percent in February. This increase was mainly due to a jump in tuition fees and the cost of school materials.
Over a 12-month span, however, the poor continue to be the worst-affected population. Inflation for low-income citizens stood at 10.9 percent over this period — against 9.7 percent for the rich.
According to analysts, further inflationary pressure is likely to come from March onwards, with the economic consequences of the war in Ukraine. The conflict has already affected commodities such as oil, generating a major fuel price hike in Brazil last week.
To try to stop the rise of inflation, the Central Bank has been increasing the Selic benchmark interest rate over the past months. The next increase will be announced later this Wednesday by the institution’s monetary policy committee. Per analysts, the hike should be between 1 and 1.25 points.