Inflation loses pace, but price is still high in the gondolas

Inflation has lost breath in recent months, and projections to 2017 are still falling. Nevertheless, with unemployment at a high level, the level of prices still high, continues to weigh on the consumer''s pocket, including low-income families, which theoretically would be the most favored by the moment.
Fresh foods, for example, register an increase of just 1% in the past 12 months. "The prices have been high highest are for services such as leisure. And, as much of the consumption basket of the poor is power items, the cost of these products no longer weighs as much as he weighed last year ", says André Barrie, Economist at the Getulio Vargas Foundation (FGV).
It strengthens, however, that the fall in income take the relief effect of deceleration of prices. "Many people are unemployed or with outdated salary. So, the perception is that became more difficult to afford the Bills. "
If the Central Bank''s projections are confirmed, Brazil can register in June, according to the newsletter Focus, a fall of 0.07 percent in the national consumer price index (IPCA) – what would be the first deflation for this month since 2006. However, in the assessment of the Economist and professor at the Faculty of Economics and business administration of the University of São Paulo (FEA-USP), Heron do Carmo price index tends to fall in June due to the seasonal nature of agricultural products and, therefore, the widespread fall in prices should not sustain for a longer period.
"We have a conjunction of factors that contribute to this deflation, as the fall in prices administered, for example. But this scenario will not remain, and this is what distinguishes a deflationary process from a fall of prices, "episodic it highlights.
Consumers who most benefits from the fall of inflation is that it consumes basic items such as food, points out professor. "Deflation brings significant benefit to that portion of the low-income population that pays the '' inflationary tax '', you cannot apply your money (and protect him), having concentrated their spending on essential items," he says.
Wages. In relation to readjustment of salaries, according to experts, there is a correction movement. In previous years, they have risen above the price increase and, now, with the slowing down, the adjustment should be lower, especially in the third quarter – which tends to bring inflation down further. "The food price shock, along with the smaller wage readjustment has a positive inertial effect on inflation," said Carlos Kawall, Chief Economist at Banco Safra. "When the market was heated, there was actual increases. Now, the emphasis is on employment guarantee. "