The purchasing power for food in Brazil has increased during Lula's third term, but remains below pre-pandemic levels due to slow recovery and inflation impacts.
During Lula's third term, the purchasing power of food in Brazil has seen some improvements attributed to a real increase in the minimum wage, a stronger labor market, and a pause in inflation. However, reports indicate that this purchasing power has not yet reached the levels witnessed before the pandemic. Analysis by economist Bruno Imaizumi highlights that while there has been a recovery, it is gradual and not sufficient to match the previous benchmarks.
The analysis reveals that as of early 2026, with the minimum wage set to rise to R$ 1,621, it would allow individuals to purchase 1.9 basic food baskets in São Paulo. This reflects an increase in purchasing power compared to earlier months; the average price of a basic basket of food reached R$ 854.37 in January. Although this is the highest purchasing power observed since the beginning of Lula's current term, it remains about 8% lower than the levels recorded in the decade leading up to the pandemic in 2010.
The findings underscore challenges facing the Brazilian economy as it attempts to recover from pandemic-induced disruptions. The slow recovery of purchasing power points to ongoing economic struggles that may affect consumer confidence and spending. As Brazil navigates these changes, policy responses will be critical in addressing income disparities and inflation to improve the overall economic landscape and ensure food security for its population.
