Inflation is not the same for all families. Each has its own consumption profile. Families with lower income spend a larger share of their income on food; higher-income families spend larger shares on education, health, and leisure activities.
The Family Budget Surveys (POF) provide detailed information on consumption structures of a vast spectrum of home units. This makes it possible to segment calculations of inflation.
The data from FGV’s last POF, which was carried out in 2002 and 2003, were used to calculate the IPC for families whose monthly income is less than 2.5 times the monthly minimum wage.
The IPC-C1 index, which has been calculated for the periods since 2004, makes it possible is to detect differences between the inflation rate measured for the population as a whole and the rate for lower-income families.
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Measures how price variations affect the consumption of products and services by low-income families
Rio de Janeiro, São Paulo, Recife and Salvador.
Food, housing, apparel, health and personal care, education, reading and recreation, transportation, and miscellaneous expenses
Data are collected through the whole calendar month, with special attention to commercial establishments that low-income families use regularly