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November 14, 2021
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Inflation is highest in October for lower-income families, says Ipea

Inflation is highest in October for lower-income families, says Ipea

The study Inflation Indicator by Income Range, released today (12) by the Institute for Applied Economic Research (Ipea), showed an acceleration of the inflation rate for all income groups in October this year, being higher for low-income families income for the seventh consecutive month. For this portion of the population, the rate of 1.35% was 0.15 percentage point above the rate of higher-income families (1.2%). In October of last year, the rates calculated were 0.98% for the lowest-income families and 0.82% for the highest-income families.Inflation is highest in October for lower-income families, says Ipea

In the month surveyed this year, the group that most contributed to the high inflation of families in the three lowest-income segments was housing, with increases of 1.1% in home repairs and 0.95% in cleaning items. These families were also subject to readjustments of 1.2% in electricity tariffs, 3.7% in bottled gas and 0.9% in rent.

The second segment that most affected the inflation of low-income households was food and beverages, generated by the increase in food in the household, especially potatoes (16%), sugar (6.4%), coffee (4.6% ) and poultry and eggs (3.2%), in addition to the 0.91% increase in pharmaceutical products. On the other hand, the prices of rice (-1.4%), beans (-1.9%) and meat (-0.04%) fell.

For the three highest income groups, the biggest impact was in the transport group, as in September. High inflation in this segment was influenced by readjustments of 3.1% for gasoline, 33.9% for airline tickets and 19.9% ​​for transport per application. According to IPEA, in addition to the rises in food and housing, the personal expenses group, influenced by the increase in services related to recreation, begins to have a stronger impact on inflation for families in higher income groups.

Twelve months

The inflation rate accumulated in 12 months reveals that despite the acceleration of inflation for all income groups, lower income families had higher inflation rates, above 11%. According to the IPEA study, inflation accumulated in 12 months reached 11.4% for families that receive less than R$ 1,808.79 per month, against 9.3% for families that receive more than R$ 17,764, 49 monthly.

For very low-income families, in addition to increases in food prices at home, the prices of potatoes (23.6%), sugar (47.8%) and animal proteins such as meats (19.8%) also rose. poultry and eggs (28.9%) and milk and dairy products (8.8%). The readjustments of 30.3% for energy and 37.9% for bottled gas also explain a large part of the high inflation in the last 12 months.

For families with higher incomes, inflation accumulated in the period was impacted, in particular, by variations of 45.2% in fuels, 50.1% in air tickets, 36.6% in transport per application and 11.6% in electronic devices.

In the year

According to the IPEA study, the greatest inflationary pressure observed from January to October 2021 occurred in the lower-middle and very low income groups, with increases of 8.59% and 8.57%, respectively. For the richest, the rate was lower, in the order of 7.50%.

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