Onion rises up to 150% in capitals; see list

The onion soared for the Brazilian consumer. In the 12 months through September, food has accumulated prior inflation of 116.74% in the country, according to data from the IPCA-15 (National Index of Consumer Prices Extended 15).

It is the highest increase among the 367 sub-items that make up the indicator, according to data released this Tuesday (27) by the IBGE (Brazilian Institute of Geography and Statistics).

The price situation is not different in the specific cut of the 11 capitals and metropolitan regions surveyed. In these places, onion was also the sub-item that most advanced in the accumulated IPCA-15. The increase exceeded 100% in the 11 metropolises.

Brasília had the highest product inflation until September: 150.57%. In Curitiba, the increase reached 137.43%. Salvador (128.13%), Fortaleza (127.48%), Goiânia (126.88%) and São Paulo (123.24%) followed.

Porto Alegre (100.20%) had the least intense increase in the product among the metropolitan regions, despite the increase having exceeded 100%.

Onion cultivation was impacted by adverse weather this year. The reduction in planted area also contributed to lower supply and higher prices, according to economist Matheus Peçanha, from FGV Ibre (Brazilian Institute of Economics of Fundação Getulio Vargas).

“The high price of onions goes beyond the climate. There was a reduction in the planted area, and this is reflected in the values ​​throughout the year”, he says.

In August, a kilo of onion cost R$ 6.44, on average, in the capital of São Paulo, according to a survey of the basic food basket published by Procon-SP. The price is 61.8% higher than the value recorded in December 2021 (R$ 3.98).

The official inflation index in Brazil is the IPCA (National Broad Consumer Price Index), also released by the IBGE. As the IPCA variation is calculated over the reference month, the September data is not yet complete. It will be known on October 11.

The IPCA-15, as it is released earlier, signals a price trend. The prior indicator is collected between the second half of the previous month and the first half of the reporting month – in this case, August and September.

In the release of the IPCA for August, which took place on September 9, the rise in onions also drew attention. The product accumulated inflation of 91.21% until the eighth month of the year, according to the official index.

“The planted area was smaller this year. It contributed to a reduction in supply and an increase in prices. Production at the beginning of the year is more concentrated in the South, then it spreads”, said Pedro Kislanov, manager of the IPCA survey.

Variation in onion prices in capital cities

Accumulated over 12 months, up to Sep.2022, in %

Source: IPCA-15/IBGE