IPEA: 2020 Inflation 6.22% for Poorest Brazilian Families vs. 2.74 for Wealthiest Families

RIO DE JANEIRO, BRAZIL – The Institute of Applied Economic Research (IPEA) says that the inflation rate for families with the lowest monthly income – less than R$1,650.50 (US$311) – stood at 1.58% in December 2020.

In the bracket representing higher income families (with household income over R$16,509.66), the variation was 1.05%, with a difference of 0.53 percentage points between the two groups.

In the year-to-date, while lower income families’ inflation rose 6.22%, the high income segment registered a lower rate: 2.74%.

The data are included in the IPEA Indicator of Inflation per Income Bracket related to December, disclosed today, January 15th, in Rio de Janeiro.

“Although the inflationary pattern present in recent months was maintained in December, marked by the rise in food prices in households, the readjustment of electricity and the rise in the prices of free services proved to be additional sources of pressure on the family budget,” reported IPEA.

According to the study, the housing and food and beverage segments had the greatest impact on inflation for lower-income families, driven by the 9.3% hike in energy tariffs and increases in the price of bottled gas (2%), rice (3.8%), beans (3.3%), potatoes (7.3%) and meat (5.6%).

The readjustments in flights (28.1%), in app transports (13.2%) and in gasoline (1.5%) turned the transport group into the biggest inflationary focus for the highest income bracket over the same period.