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Price of Basic Food Falls in Brazil PDF Print E-mail
Written by Liésio Pereira   
Tuesday, 05 July 2005

In June the cost of a basket of basic necessity goods (cesta básica) in Brazil fell in 12 out of 16 capital cities surveyed by the union-linked socio-economic research organization, Dieese (Departamento Intersindical de Estatística e Estudos Sócio-Econômicos).

Prices were down most in Brasília (-7.37%), Belo Horizonte (-6.81%) and Belém (-5.08%). Prices rose most in the Northeast: Aracaju (3.06%), João Pessoa (3%), Fortaleza (1.96%) and Recife (1.01%).

According to Dieese, the June result is all the more significant when it is recalled that in May prices of the basic basket rose in all 16 capital cities.

José Silvestre, a Dieese official in São Paulo, says the result shows that there is a tendency for inflation to also fall.

"In general, we have various indications of a drop in inflation. The prices of food items in the basic basket all fell in June, led by some items that have a significant weight in calculating the basket, such as tomatoes, sugar and rice," explained Silvestre.

However, cumulative prices for the year, January to June, have risen in all 16 capital cities, with Recife (20.69%), Fortaleza (16.41%) and João Pessoa (14.2%) in the lead - all these capital cities are in the Northeastern region of Brazil.

The lowest price increases occurred in Brasília (2.54%), Belém 2.78%) and Rio de Janeiro (4.16%). Silvestre points out that even with the cross-the-board increase for the year, the average increase for the 16 capital cities has been small.

ABr - www.radiobras.gov.br

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