Inflation: an analysis of the relation between the variation of the basic food basket value and the regional purchasing power

Abstract

This work investigates the evolution of purchasing power in one of the most important urban expansion fronts in Espírito Santo between 2010 and 2022, comparing it with several Brazilian states. The results obtained indicate that the purchasing power of the population of the analyzed Brazilian states has decreased over the years and that the value of the basic basket has not yet managed to meet the constitutional assumptions regarding the commitment of the minimum wage to the food item. In the analysis of the evolution of basic food basket prices from a local perspective (neighborhood level), the results demonstrate that the change of establishment for shopping can provide advantages (savings) of up to 20.5% in the value of purchases.