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Higher-income consumers felt the pinch of fuel and airline tickets.

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The Conjuncture Group of the Institute for Applied Economic Research (IPEA) released today the Indicator of Inflation by Income Bracket. According to the indicator, the inflation rose in September at a faster pace for higher-income consumers than for lower-income consumers. Prices of fuel and airline tickets were responsible for the rise.

IPEA’s Indicator of Inflation by Income Bracket is calculated based on the variations of prices of goods and services surveyed by IBGE’s National System of Consumer Price Index (SNIPC), dividing the data by income brackets.

The National Consumer Price Index (IPCA), calculated by the Brazilian Institute of Geography and Statistics (IBGE), also recorded a rise (0.48%) in September. While for the lowest-income segment, the rise was 0.34%; for the highest-income segment, the increase was 0.53%.

The IPCA is an average of the price variation for households whose income range from one to 40 minimum wages. On the other hand, the segments divided by the IPEA’s Indicator of Inflation by Income Bracket range from a monthly household income below R$ 900, in the case of the lowest-income range, to a monthly household income above R$ 9,000, in the case of higher income.

SOURCE: DCI