Brazil: Basic food basket at R$631 consumes 62% of minimum wage in Brasília

RIO DE JANEIRO, BRAZIL – To buy the basic food basket, a family needs to spend R$631.95 (US$113) in Brasília. According to the Intersindical Department of Statistics and Socioeconomic Studies (Dieese), the amount consumes 62.11% of the net minimum wage. To collect the money, one hundred twenty-six hours and 23 minutes of work are needed.

Dieese, a research institute run by Brazil’s labor unions, published the value of the basic food basket for November 2021 on Tuesday (7). Compared to October, when the food basket cost R$644.09, the price was reduced by 1.88%. In relation to the last 12 months, it has increased by 10.36%.

The products with higher prices compared to October are sugar (+3.98%), coffee (+2.83%), butter (+2.70%), oil (+2.34%), potatoes (+2.14%), flour (+1.53%). On the other hand, items with price reductions in the same period are tomatoes (-9.59%), rice (-2.79%), milk (-2.01%), bread (-1.75%), meat (-1.68%), bananas (-1.50%) and beans (-0.40%).

In the annual variation, coffee and sugar increased 73.5% and 50.62%. In absolute values, the most expensive products are meat (6 kg – R$238.98), bread (6 kg – R$84.18), tomatoes (9 kg – R$69.57).

Dieese calculated the price in 17 Brazilian capitals. The basic basket in Brasilia is eighth-most expensive in the country.

MINIMUM WAGE NEEDED

The state capitals with the most expensive baskets are Florianopolis (R$710.53), São Paulo (R$692.27), Porto Alegre (R$685.32), Vitória (R$668.17) and Rio de Janeiro (R$665.60). On the other side of the scale, the cheapest ones are in Aracaju (R$473.26), Salvador (R$505.94) and João Pessoa (R$508.91).

According to Dieese, compared to October, the average cost of the basic food basket increased in nine cities. The highest increases were registered in Recife (8.13%), Salvador (3.76%), João Pessoa (3.62%), Natal (3.25%), Fortaleza (2.91%), Belém (2.27%) and Aracaju (1.96%).

Based on the calculation of the most expensive basket, registered in November in Florianópolis, Dieese claims that the minimum wage in Brazil should be R$5,969.17, more than five times the current national floor of R$ 1,100 per month.

READING THE NUMBERS

For the economist and technical supervisor of Dieese in DF, Mariel Angeli Lopes, the changes are related to climate variations. The significant increase in the price of coffee is a consequence of the problems in the 2021 harvest.

On the other hand, there was a slight reduction in the price of meat (-1.68%), mainly because of the decrease in exports to China in October and November.

However, the declines have not reversed the pressure generated by consecutive increases. “Although it was a month of November with a drop in the average price of the basic food basket, it was still a very small drop,” he pointed out.

FOOD INSECURITY

According to the specialist, the Covid-19 pandemic accelerated the problem of food insecurity in Brazil that had been growing. A significant part of the Brazilian population depends on a minimum wage to survive.

“We have almost 20 million experiencing some food insecurity. They are not getting all the necessary nutrients or all the meals as recommended. This has a direct relationship with pay,” he said,

“The average labor income is not enough to provide the basic needs of families,” he highlighted. In Brazil, the average labor income is less than three minimum wages. According to the National Household Sample Survey (Pnad), the average income is R$2,500.