COUNTRY’S FIRST PRICE DROP IN NEARLY A YEAR DRIVEN BY CHEAPER POTATOES AND OTHER FOOD ITEMS
THERE has been a substantial price drop in the price of potatoes in Brazil, according to statistics released by the Brazilian Institute of Geography and Statistics (IBGE).
The -19.04% reduction in August was amongst a number of price drops in the food and beverage sector, which saw a 0.44% reduction overall in prices last month, driven by cheaper food and housing items.
August marked the first month since June 2023 to see a downturn, with the IPCA, Brazil’s principal price index, escalating by 4.24% over the past year. This aligns with the government’s 2024 inflation ceiling of 4.5%. Economists’ predictions that prices would see a 0.02% increase have proved to be wrong, as the IBGE has instead reported a 0.02% decline.
The country’s Chamber of Deputies recently approved a bill to regulate the Tax Reform on consumption. It established rules and exceptions to food taxation in Brazil, including products from the basic-needs grocery package, meat and even soft drinks.
Source: Brasil de Fato Photo: HANS
