Analysis of food inflation in Brazil between 1996 and 2016

Resumo

This article estimates the inflation in food and agricultural products in the last twenty years and analyzes its possible causes. In the decade of 2007 to 2016, the food prices tended to increase more than those of the general economy did. Other papers have already studied the change in the pattern of food inflation, although little was discussed about the possible causes of the increase which is the objective of this study. Due to public policies of income rise with real gains in the minimum wage, family allowances and retirement grants, the population did not perceive this silent crisis of food price increase. The rise in demand caused by China’s economic boom and increase in Brazilian domestic consumption as response to income rise in the last decade not followed by significant increases in productivity caused the rise in prices paid for agricultural products. Technological growth could mitigate this impact. However, in the more recent period it failed to have a positive effect on productivity of various agricultural products in Brazil.