In recent years, the price of the product has faced a lot, with an increase of 99.46%, almost doubled in value. That is, even with the recent drop, coffee continues with high prices.
The grain was the second item that most pulled inflation in the last twelve months. In addition, it represented 0.30 percentage point of total inflation of 5.23%. Coffee only lost to meat, which contributed 0.54 percentage point, with a 23.34%increase.
According to the Brazilian Coffee Industry Association (ABIC), the increase in coffee price over the 18 months before July was the result of two main factors: the growth in global demand – especially driven by increased consumption in China – and climate problems that negatively affected grain production in Brazil.
The reduction in the price of coffee to the consumer was already expected by analysts and was confirmed by two indicators released in July: the IPCA-15, which acts as a preview of official inflation, and the IPC, inflation rate calculated by the Institute of Economic Research Foundation (FIPE).
