The Impacts of Rising Inflation During the Pandemic

Written by Paulo Nogueira

Published on 11/03/2021 at 19:45

Alessandro Azzoni, Advogado e economista/ fonte: Divulgação M2 Comunicação

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Soy oil, rice, long-life milk, meat, and tomato are the products that most pulled inflation, essential items that could not be missing from the Brazilian during the pandemic

Amid the pandemic, the Brazilian Institute of Geography and Statistics (IBGE) released on Thursday (3/11) the Broad Consumer Price Index (IPCA). Considered the official inflation of the country, the IPCA stood at 0.86% in February, after rising 0.25% in January. The rate is the highest for the month since 2016, when it was 0.9%. In the year, the increase has already accumulated 1.11%. According to IBGE, the main contributing factor was gasoline, which rose 7.11% in the period. Alone, this item was responsible for 42% of February’s inflation.

According to lawyer and economist Alessandro Azzoni, who is a counselor for SINFAC/SP (Union of Factoring and Financial Institutions of the State of São Paulo), this impact of inflation is concerning, as it directly affects families with fewer resources. “We have a scenario with high inflation, rising prices, and many people completely without income, living on emergency assistance or other benefits from INSS. For these people, money is worth much less, as the impact occurs directly on the consumption of these families. And they are basic items, so this is really very concerning,” warns Azzoni.

Azzoni cites some accumulated numbers from last year, when soy oil rose 104%, rice 76%, long-life milk 27%, meat 18%, and tomato 53% when we were still in the beginning of the pandemic. “These are items present in the Brazilian basic food basket, which significantly pulled the inflation variation. Now, we will have the impact of IGPM – which adjusts practically all linked contracts, such as energy, public utility companies, and rental contracts. As it has already accumulated an increase above 20%, we run the risk of the inflation rate for the first quarter of 2021 being even greater,” warns the specialist.

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SOURCE PROFILE

Alessandro Azzoni – Lawyer and economist, specialist in environmental law, working in the areas of Civil, Labor, and Tax Law. He holds a master’s degree in Law from Universidade Nove de Julho, specialized in Environmental Business Law from Faculdade Metropolitanas Unidas (FMU). Graduated in law from FMU. Bachelor in Economic Sciences from FMU. Law professor at Universidade Nove de Julho (Uninove). He is a Deliberative Counselor of ACSP – Commercial Association of São Paulo; Counselor of SINFAC/SP (Union of Factoring and Financial Institutions of the State of São Paulo – Coordinator of NESA – Nucleus of Socio-Environmental Studies – ACSP – Commercial Association of São Paulo; Member of the Urban Policy Council – ACSP – Commercial Association of São Paulo; Member of the Environmental Law Commission OAB/SP.

Source: M2 Comunicação

The Impacts of Rising Inflation During the Pandemic

Soy oil, rice, long-life milk, meat, and tomato are the products that most pulled inflation, essential items that could not be missing from the Brazilian during the pandemic

SOURCE PROFILE

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The Impacts of Rising Inflation During the Pandemic

Soy oil, rice, long-life milk, meat, and tomato are the products that most pulled inflation, essential items that could not be missing from the Brazilian during the pandemic

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