One of the biggest challenges during the pandemic is saving money on purchases. Even basic products like rice and beans, prices have increased in recent months. In turn, 62% of the population saw their income decrease over time, according to Datafolha.The change in values didn't just take Brazilians by surprise. In many regions of the world, inflation has caused people to pay special attention to supermarkets. However, according to a study by the University of Oxford with data from the World Bank, Brazil is the country where prices rise most quickly.
To give you an opinion, at the beginning of 2020, you could buy 5 kg of rice for 15 dollars, in the month of 9/2020, the same product was sold for 40 rolls in some cities. Although the increase is not the same everywhere, the fact that inflation is so strong in everyday items worries consumers.
Why is inflation so strong in the country? Although the coronavirus outbreak is affecting Brazil the most, food price inflation is not directly related to it. In fact, the appreciation began last year, when the real price actually fell in relation to the dollar.
Therefore, Brazilian products became cheaper than those from other countries. This causes manufacturers to favor exports over domestic sales, which reduces domestic supply and contributes to price volatility.
Furthermore, other factors contributed to making the basic food basket more expensive. In 2020, some Asian countries, such as Thailand and Vietnam, face a serious water crisis, a force that makes rice production and export difficult. In this way, countries like Brazil stand out in the international market.
The big problem is that the acceleration in prices is not accompanied by an increase in income – on the contrary. Most of the population lost their income and even their jobs due to the pandemic, which means inflation is even worse.
According to an article published by CNN, inflation and the pandemic could put Brazil back on the hunger map, according to research carried out by the United Nations. The country enters this statistic when 5% of the population is malnourished.
Image: Pixabay How will prices increase in 2021? It is still too early to define whether the price will remain in 2021. But, due to the acceleration in 2020, it is important for consumers to be alert.
Some foods can be modified or increased more slowly – especially as they have increased significantly in recent months. This is the case of rice, responsible for many discussions in 2020. A set of products, which are easily found for more than R$20, now have an average price of R$18.99, according to Folheto Extra. The kilo package can be found for R$3.89 at Tenda Atacado.
If the exchange rate remains stable and there are no other complications, such as a crisis in food production, it is possible that food will not see a large increase. In any case, currently, price research is the consumer's only weapon to avoid intimidated prices.
As you can see, Brazilian consumers are the most affected by inflation during the pandemic, according to the English study. Among the main reasons is the increase in exports, which is favorable to the international market, but supply to the domestic market has decreased. For 2021, the situation is still uncertain, so it is important to monitor it to avoid excessive spending.