The cost of living increased by 10% in 2021, in the Metropolitan Region of São Paulo, according to a study carried out by the Federation of Trade in Goods, Services and Tourism of the State of São Paulo (Fercomercio-SP). The increase was the highest, according to the entity, since 2015, when the index registered an increase of 11.56% in the cost of living throughout that year.
The increase in the cost of living was greater for the poorest people. For class E, the increase reached 11.38%. In class A, the increase was 9%.
According to Fercomercio-SP, the international increase in oil prices caused a chain price increase. Transport costs rose 20.6%, with ethanol prices rising 63.7%, gasoline prices 42.8% and diesel oil 41.4%.
The rise in energy also influenced housing costs, with a 38% increase in the price of a bottle of gas in 2021 and a 23.2% increase in piped gas. Residential electricity increased by 25.8%, according to Fecomercio, due to the drought that hit Brazil last year and led to the activation of thermoelectric plants.
There were also important increases in food, with an increase of 10% in the price of meat, 13.2% in wheat flour and 10.2% in milk and dairy products.
In December, the rise in the cost of living was 0.78%. A still high percentage, according to the federation, but lower than the level of October (1.41%) and November (1.01%). In the month, the biggest increase was registered in the food and beverage segment. The prices of coffee (9.8%), papaya (28.7%) and sirloin (5.1%) rose.
In Fercomercio’s assessment, inflation is losing strength and, in 2022, the cost of living should still be high, however, at a lower level than in 2021. “Since the most relevant impacts of the pandemic on prices have already been absorbed over the last two years”.
Despite the prospect of an improvement in the economic scenario, the entity draws attention to the need to reduce the current level of unemployment. “It is important to remember that Brazil still has 13 million unemployed. Therefore, any price advance, without great opportunities in the job market, will have a harmful socioeconomic effect on families, who, for the most part, are unable to recover the losses caused by inflation.”, highlighted Fecomercio.
