Vaivém: Food rises less, but return to the level of a year ago is far

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The average inflation rate of Fipe (Fundação Instituto de Pesquisas Econômicas) is also heading towards the field of deflation. Publishing surveys weekly, the entity indicates, more frequently, the behavior of prices in São Paulo.

The data released this Wednesday (17), and which show the average evolution of prices in the last 30 days, in relation to the 30 immediately previous ones, point to a reduction of 0.03%.

This drop, however, was caused by a retraction of 2.33% in the transport sector, while food remains in the positive field, with a high of 0.34%.

After an accelerated rise, food has undergone a price adjustment in recent weeks, but is still at very high levels.

The Fipe survey shows that the food sector had an accumulated increase of 19.4% in the last 12 months. This rise, after an intense loss of income, will make the consumer feel the cost of food in his pocket for a long time.

Fipe already indicates a smaller evolution in the rises of meat derivatives, baked goods and flour. Deflation affects beef, soy oil, and vegetables.

Even with these drops, the current prices of these products are still very far from what they were a year ago. Soybean oil maintains an accumulated increase of 30% in the period; and “in natura” products, 26%.

The bad news for consumers is that some staples have resumed their uptrend. Rice, in the off-season, rose again, becoming 2.6% more expensive in supermarkets in the last 30 days. The Rio Grande do Sul crop, the main one in the country, will only reach the market in the first months of 2023.

Milk, after the rapid rise in prices in recent months —in July it rose 22%—, loses strength and is up 11% in 30 days. Current prices, however, are still 63% higher than a year ago.

Pork, which has been a substitute for beef, due to the high prices of the latter, also rose again. Current values, however, are still 6% lower than a year ago. Chicken, another cheaper protein option for consumers, remains high.

Deflation also arrived for potatoes and onions, but the current values ​​of negotiations, even with the falls, accumulate highs of 48% and 85%, respectively, in 12 months.

The return of food prices to the levels of a year ago is still a long way off, although the inflation rate may mathematically indicate stability or decline in the short-term comparison.

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