After beans and rice, another familiar combination at the Brazilian table should be even more expensive—coffee with milk. Behind the possible increase in consumer prices, there are the effects of the drought and the recent frosts that hit the country.
The pair of climatic phenomena affects production in the countryside and, thus, tends to impact the prices of coffee and milk on supermarket shelves. In the view of analysts, transfers of increases to products that reach the consumer's table are practically certain. The magnitude of the readjustments and the speed at which they will occur remains to be seen.
In the 12-month period up to July, Brazilian consumers saw ground coffee rise 13.21%, while soluble coffee advanced 3.69%, according to data from the IPCA, the country's official inflation index. Long life milk, in turn, had an increase of 11.29%. In the same period, the general inflation index registered a variation of 8.99%. Data are calculated by the Brazilian Institute of Geography and Statistics.
Translated by Kiratiana Freelon