Inflation decelerates for all income brackets in March

According to the Ipea Inflation Indicator by Income Group, inflation for very low-income families totaled 0.53% in March. The highest rate was with middle-high income families, with 0.81%.

Breaking down by income category, the IPCA closed March as follows:

Source: Ipea

Comparison

Compared to March 2022, there was a strong deceleration for all social classes, but the reduction was more intense for families with lower purchasing power, mainly due to the reduction in the rise in food prices at home. Except for the fish and poultry and eggs segments, the other foodstuffs registered smaller price changes in March 2023 compared to March 2022.

In the 12 months ended in March, high-income families had the highest inflation (6.44%). The lowest inflation was registered in the middle-low income segment (4.38%). Among very low income families, the indicator reached 4.60%.

groups

Influenced by increases of 8.3% for gasoline and 3.2% for ethanol, the transport group put pressure on inflation for all income brackets. However, higher-income families felt the impact less because of the 5.3% decline in airline tickets and 1.6% in vehicle insurance.

Two more groups put pressure on inflation in March, but to a lesser extent. In housing, the 2.3% rise in electricity tariffs mainly impacted lower-income families. In the health and personal care group, families with lower purchasing power felt the 0.72% increase in personal hygiene products, while those with higher incomes were influenced by the 1.2% increase in health plans.

The higher income segment was also influenced by the personal expenses group. Mainly due to readjustments of 0.32% in personal services and 0.55% in recreation services in March.

Official inflation index, the IPCA closed March at 0.71%, lower than the February rate (0.84%). In 12 months, the indicator accumulates 4.65%, below 5% for the first time in two years.