To the high product prices are directly related to the inflation. When it rises, Brazilians feel the burden of spending in their pockets. The feeling that everything is expensive just reaffirms the salary devaluation of the Brazilian worker, who is going through difficult times during the pandemic.
See too: What is GDP and what does it represent for the economy of a region?
see more
'Barbie' movie predicted to boost Mattel profits…
Japanese company imposes time restriction and reaps benefits
Inflation is responsible for measuring the increase in prices of services and essential goods for citizens. The following categories are included in his analysis: housing, education and communication, clothing, health, transport and personal expenses.
But, after all, why is everything so expensive in Brazil?What variables influence the increase in prices? According to the Extended National Consumer Price Index (IPCA) of the Brazilian Institute of Geography and Statistics (IBGE), inflation reached 0.87% in August. Its highest level since last year.
The 12-month accumulated rate reached 9.68%, the highest since February 2016. Such an expressive increase was a consequence of the increase in fuel prices, in particular the Gasoline, which rose from 1.24% to 2.96% in July. The item's accumulated shot nine times in 2021, adding an increase of more than 30% in August.
Lack of rain and its consequences
In addition to the rise in fuel prices, the lack of rain is another reason that has been harming the supply of both energy and food to the population. In many states, the reservoirs are already at very low levels, with the need to ration water.
The water crisis impacts food production, as it reduces production and consequently the supply of products. With that, the they go up in price in supermarkets. In expenses with electricity, for example, if the supply is compromised, the flag is raised, responsible for making the electricity bill more expensive at the end of the month,
In the midst of this entire chain, the consumer ends up being the most impacted part. The problem of the water crisis associated with inflation ends up compromising the financial day-to-day of millions of Brazilians, who are looking forward to relief in their bills.
