Deflation only came to families with incomes above R$9,696 in SP

The deflation in consumer prices registered in July only benefited families with monthly incomes above eight minimum wages (R$9,696), according to the IPC FX, Fipe’s index that measures inflation in the city of São Paulo by income bracket. .

Last month, the CPI for families with income above R$9,696 dropped 0.11%. These consumers benefited from lower prices for items such as gasoline, ethanol and electricity.

Gasoline alone, which fell due to the reduction in ICMS and prices by Petrobras, contributed 0.46 percentage points to inflation in this range. For the poorest, the reduction was smaller, 0.19 percentage point.

For families with an income of 1 to 3 minimum wages, the Fipe price index registered a high of 0.44% last month. For those at the intermediate level (range from R$3,636.01 to R$9,696), inflation was 0.17%.

This Tuesday (9) the IPCA, the country’s official inflation index measured by the IBGE, was released, which showed deflation of 0.68% in July.

The difference between price increases occurs because the consumption profile of families varies according to income. Higher-income consumers, for example, spend more on transport, health and education. For the poorest, expenditure is more concentrated on food and housing (66% of expenditure). Considering this difference in the weight of products and services in the family budget, it is possible to break them down by income bracket.

In the opposite direction of gasoline, for example, long-life milk, which was the villain of prices last month, made a positive contribution of 0.29 percentage point to inflation in the first income bracket and of only 0.05 point for who earns more than eight minimum wages.

“Fuel has a very large weight for this higher range. When gasoline and ethanol drop, it practically does not affect the inflation rate of those who earn up to three minimum wages, because they do not have their own car, but it does affect the rate of those who earn a lot. more than eight minimums”, says economist Guilherme Moreira, coordinator of the indexes linked to the IPC-Fipe.

“On the other hand, food inflation is twice that accumulated in the general index and continues to rise a lot. In the range of up to three salaries, practically a third [do índice] It’s home food.”

According to him, the effect of the reduction in fuel prices has not yet been fully reflected in Fipe’s inflation index, since the reductions in ICMS and at Petrobras occurred throughout the month. Therefore, the expectation is that there will still be some downward effect on the August data.