LEONARDO VIECELI
RIO DE JANEIRO, RJ (FOLHAPRESS)
The average income of the 10% poorest workers in Brazil was not enough to buy half a basic food basket in a city like São Paulo in 2022. It is the lowest number in the historical series, with data from 2012.
Meanwhile, the income from work of the richest 10% allowed them to purchase almost 14 baskets, on average.
Considering the average income of all workers (R$ 2,659), this ratio was 3.49 baskets in 2022. This is another minimum in the series started in 2012. The maximum was 5.15 in 2014.
The conclusions are from a survey prepared by economist Bruno Imaizumi, from LCA Consultores, based on data from IBGE (Brazilian Institute of Geography and Statistics) and Dieese (Inter-Union Department of Statistics and Socioeconomic Studies).
“The first message of the results is about what we know: Brazil is a poor and very unequal country, one of the most unequal in the world”, says Imaizumi.
The survey uses IBGE statistics on the average income obtained by Brazilians from work over the past year. The indicator disregards income received from other sources, such as social benefits, which have an impact on the poorest sections of the population.
National income data is cross-referenced in the survey with the price of the basic food basket researched by Dieese each month in the city of São Paulo. On average in 2022, the cost of purchasing these foods was R$762 in the capital of São Paulo.
Among the poorest 10%, the average income from work was R$365 last year. Thus, you could buy the equivalent of just 0.48 basic food baskets in São Paulo. This is the first time that this ratio is slightly below 0.5 in the historical series, with data from 2012 onwards.
In the case of the richest 10%, the average income from work was R$10,497 in Brazil in 2022. The amount would be enough to purchase 13.77 basic food baskets at the time in São Paulo. It is also the lowest result in the series.
According to the survey, the maximum that the poorest 10% were able to purchase with their income from work was the equivalent of 0.7 basic food baskets. This occurred in 2014. Among the richest 10%, the record was 21.16 basic food baskets, also in 2014.
Imaizumi assesses that, in recent years, food prices have risen due to a combination of factors. The list included the disruption of production chains during the pandemic, the impact of the Ukrainian War on agricultural commodity prices and climate problems in Brazil.
As prices rose, workers’ spending power shrank. “All of this contributed to lower purchasing power. Obviously, the scenario is much more delicate for the poorest”, says the economist.
Other comparisons in the survey also illustrate differences in workers’ spending power.
In 2022, the labor income of the poorest 5% (R$227) bought only 0.3 basic food baskets. The income of the 1% richest portion (R$ 29,198) was able to purchase 38.31 baskets.
SCENARIO FOR 2023
According to Imaizumi, the picture is more positive for consumers in 2023. In part, this is because food prices are showing signs of relief in a scenario of greater product supply. This year, Brazil is experiencing the effects of an increase in the agricultural harvest, which projections indicate a record high.
Food prices at home accumulated a drop (deflation) of 0.62% in the 12 months up to August, according to the IPCA (Broad National Consumer Price Index), released by IBGE. As Folha de S. Paulo showed, this is the first time that this segment has shown a reduction in the accumulated result since May 2018.
“The positive news for 2023 is that we are seeing a drop in price levels, but nothing compared to what we had before the pandemic”, ponders Imaizumi.
“In 2023, we will have a real increase in the minimum wage, a certain recomposition of the labor market, maintenance of social benefits (…). All of this has contributed to a slightly more positive scenario”, he adds.
According to Ipea (Institute for Applied Economic Research), inflation for the poorest families accumulated an increase of 3.7% in the 12 months up to August. The increase in prices was smaller than that seen among the richest (5.89%).
Ipea calculations take into account IPCA data and differences in the composition of consumption baskets in each income range.
In proportional terms, food absorbs a larger share of the budget of the poorest. The relief in food prices in 2023 is cited as one of the reasons for the lower rise in inflation for this segment of the population.
The Tax Reform being discussed in the country provides for the creation of a national basic food basket. Currently, the list of products varies according to the tax treatment granted in each state.
In its survey, Dieese researches 12 or 13 basic foods, depending on the capital. The list is based on the 1938 decree that established the idea of a basic food basket in Brazil.
As Folha de S. Paulo showed, the definition of a national list of products is seen by experts as a challenge in the reform. This is because different sectors can press for special tax treatment for their goods. Furthermore, there are regional differences in Brazilian diets.
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