Brazil’s purchasing power has fallen 30% in the last five years
RIO DE JANEIRO, BRAZIL – A survey conducted by the Brazilian Institute of Geography and Statistics (IBGE) in April shows that the purchasing power of the Brazilian Real fell by 30% in the last five years. Added to that, the average income of Brazilians fell 8%.
The IPCA-15 index calculated by IBGE presented new records. The accumulated inflation in 12 months was around 12%. The diffusion index, which calculates how much inflation has spread to other items in the market, is approximately 75%, the highest ever recorded. Of the 367 products and services surveyed, 289 became more expensive in April. The increase in fuel prices is the main factor in this list, pushing up other products and services.
To get an idea, R$50 (US$10) today was equivalent to R$85.99 in 2013. The effect of inflation and wage stagnation mainly affects the pockets of most of the country’s workers. In 11 capitals where the research was conducted, the items of the basic basket are equivalent to more than half of the minimum wage.
In addition to this scenario, 12 million people are unemployed, not counting those who have already stopped looking for work.
The mainstream media and the political and economic establishment present this catastrophic news as a direct result of the pandemic, the war in Ukraine, and the water crisis, respectively, as the main factors behind the upturn in inflation. And Brazil is not alone; increased inflation combined with purchase power reduction is soaring worldwide.
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Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
-0.37%
173,936.91
-0.37%
66,191.11
-0.15%
11,416.39
+0.42%
3,007,801
-0.57%
2,493.41
-0.45%
60,629.82
-0.05%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 173,936.91 | -0.37% | +21.85% | 174,586.26 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
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