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Basic Basket in Belo Horizonte Rises and Already Commits 45% of the Minimum Wage; Rice, Beans, and Tomatoes Drive Up Food Prices.
The basic basket in Belo Horizonte has once again recorded price increases and has become an even heavier burden on family budgets.
The survey published by the Foundation Institute of Economic, Administrative and Accounting Research of Minas Gerais (Ipead) shows that, in February, the cost of essential food increased by 0.38%, reaching R$ 736.57.
This amount corresponds to 45.44% of the current minimum wage of R$ 1,621, highlighting how food prices continue to impact the purchasing power of the population.
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The increase was mainly driven by traditional items of the Brazilian table, such as rice, beans, and tomatoes, which showed the highest variations during the period.
Even with the overall inflation recording a decrease of 0.7% in February, the price increase of food in the capital of Minas Gerais displayed a different behavior, directly affecting the cost of basic nutrition.
Despite this, the data indicates that when comparing year-on-year, the situation shows some improvement. A year ago, the basic basket in Belo Horizonte was R$ 18.07 more expensive than the current value.
Food Price Increase Was Driven by Rice, Beans, and Tomatoes
Among the analyzed products, the main drivers of the increased food prices were three fundamental items in the Brazilian diet.
The rice recorded an increase of 4.28%, while the black beans increased by 4.18%.
The tomato registered a rise of 3.90%, becoming one of the products that most influenced the month’s results.
On the other hand, some food items saw price decreases, helping to alleviate further pressure on the basic basket in Belo Horizonte. Highlights include:
Soy Oil: decrease of 3.35%;
Banana Caturra: drop of 3.21%;
Milk: reduction of 2.22%.
Even with these occasional reductions, the weight of basic nutrition remains high relative to the minimum wage, especially for families relying on lower incomes.
Basic Basket in Belo Horizonte Accumulates Drop in the Last Year
Despite the food price increase recorded in February, the Ipead survey shows that the cost of the basic basket in Belo Horizonte experienced a decrease of 2.39% over the last 12 months.
This trend indicates that while monthly fluctuations occur, the broader tendency points to a gradual reduction in food prices.
According to Ipead economist Eduardo Antunes, this type of variation is part of the natural dynamics of the agricultural market and the food production chain.
“Usually, the basic basket always shows peculiar variations throughout the analyzed periods – in this case, monthly.
Production costs, demand, or a larger harvest contribute positively to any price increase or decrease.
At this moment, we see the tomato price rising – an increase of 3.90%, the product that most influenced the result, likely due to climatic conditions.
There are reports that tomatoes do not thrive in rainy periods.
The beans are also exerting pressure, with an increase of over 4%. The demand is likely unchanged, but production might be lower, with a harvest slightly worse than in previous periods,” explains Eduardo.
Food Prices Also Affect Other Popular Products
In addition to rice, beans, and tomatoes, other food items have also been indirectly impacted by rising production costs.
According to Antunes, bread, for example, has been under pressure due to the rising cost of wheat flour, an essential raw material for its production.
“What happened with beans also happened with bread, pressured by the price of flour.
In the case of rice, it had been systematically decreasing in price and, at this moment, also rose by 4%. We saw this movement in the basket now, but it may be attributed to a one-time increase in production costs.”
This scenario illustrates how factors related to agricultural production and international markets can directly impact the price of food, affecting the cost of the basic basket and families’ purchasing capacity.
Seasonality Influences Food Price Increase
An important factor in explaining the variation of the basic basket in Belo Horizonte is the so-called seasonality, a term used in economics to indicate price fluctuations throughout the year due to climatic factors, production cycles, or product supply.
According to the economist, some food items exhibit behavior that is quite sensitive to these conditions.
“Rice started to rise again after long periods of decline – in February, it closed with an increase of 4.28%, but over the last 12 months, it still shows a decrease of 4.30%.
Beans have another peculiarity: they showed a significant increase of 4% now and, for the year, they already accumulate around 8%, but for the last 12 months, the increase is 5%.
The tomato also heavily depends on climatic conditions – at this moment, it shows an increase, but compared to last year, it accumulates a decrease of almost 15%,” he comments.
Even with Recent Increase, General Scenario Is Still of Decline
Although the recent increase has drawn attention, the recent history of the basic basket in Belo Horizonte shows that prices have been falling since the peak recorded last year.
In March of the previous year, the cost of the basket reached R$ 780.66, the highest value in the historical series monitored by Ipead. Since then, food prices have been gradually declining.
For the economist, the increase recorded in February should be viewed with caution.
“In this survey, there was a small variation of 0.38% upwards. Much lower than other variations observed in previous months,” concludes Antunes.
Even so, the data reinforces an important alert: as long as the basic basket continues to represent almost half of the minimum wage, any food price increase can have a direct impact on Brazilian families’ budgets.
See more at: Basic Basket Rises in Belo Horizonte and Costs 45% of the Minimum Wage
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