Estadão: 10/22/2022
Considering Andrea Damico, partner and chief economist at Armor Capital, forecasts, after three years of upside pressures, food-at-home prices (3.5%) will increase less than the whole IPCA inflation (4,7%). “At least on the short term, we might see an inversion, with a possible raise on fuel prices and a better food prices behavior”, according to Damico. She mentions an awaited international prices stabilization due to the global economy slowdown, which would impact the protein consumption pattern, and the resumption of Ukraine grain exports, allowed by an agreement with Russia.
Also, the economist points out that the wholesale food prices improvement has not been seing yet on consumer prices. “We see a downward bias to our forecast, with a good chance of food-at-home inflation ends up the year around 12%”, says Damico. Those prices registered a 13.28% advance on the last twelve months.
Deflation has been more intense to the middle-class population than to the poorest, says Ipea
The intense inflation drop in the last three months, Brazil registered the largest prices contraction – in other words: deflation – ever registered on statistics, affected more the middle-class families than the poorest Brazilian people. While middle-class social layers deflation surpassed 1.5% between July and September, the price drop of products consumed by families with very low income – which earn less than R$ 1.73 thousand per month – was less than the half: 0.67%.
