Bela Gil inflation: ups and downs of fruits and vegetables – 07/14/2023 – Market

Chef and presenter Bela Gil announced a reduction in the prices of dishes at her restaurant, Camélia Òdòdó, in the São Paulo neighborhood of Vila Madalena. The variation between 10% and 20% of the amount charged, she says, is a consequence of the food deflation registered in June in the country.

On Tuesday (11), the IBGE (Brazilian Institute of Geography and Statistics) pointed to a drop of 0.08% in the IPCA (National Broad Consumer Price Index), driven by the reduction in prices of cars, food and fuel.

The group of food and beverages had a drop of 0.66%, mainly associated with the decrease in food prices at home (-1.07%).

Some reacted to the restaurant’s price cuts by saying that vegetables and fruits remain expensive at retail, even as overall food inflation weakens.

An internet user who claims to closely follow the prices of fresh produce wrote that there was no drop, but an increase, highlighting the asterix potato.

According to the restaurant, the menu adjustment took into account the lower prices of items present in almost all meals at the establishment, such as carrots, lemons, soy, oranges, pumpkin, potatoes, chayote, cassava and ginger. In addition, the decrease in the price of fuel was considered, informs the establishment.

In fact, the potato became more expensive, but only it. According to the IBGE, potatoes registered an increase of 6.43% in the month. According to the Ceagesp Index, the asterix potato had a price increase of 21% from April to June.

The other foods on that list that are part of the IPCA recorded a drop or relative stability in the monthly index for June. These are the cases of carrot (-7.15%), pear orange (-2.91%), lime orange (-11.22%), bay orange (-26.93%), lemon (-0.21% ) and cassava (0.07%).

Already considering the accumulated inflation of the last 12 months, which gives a longer notion of price performance, the potato (-6.83%) and the bay orange (-8.75%) had deflation, but there are still increases double digits, such as carrots (15.55%).

The Inflation Panel, a tool for Sheet based on IBGE data, shows that fruits, for example, have accumulated inflation of 13.36% in 12 months, and vegetables, 2.8%.

“While last year food inflation closed at two digits, for this year the forecast is to close the year at 3%. This means that we are in a process of normalization of prices”, says Carla Beni, professor of economics from FGV (Fundação Getulio Vargas).

“Bela Gil’s restaurant is interesting because it sells vegan cuisine (the prices of which have been falling a lot) to a high-income audience, which gives it a good margin. This reduction therefore, in theory, would not make a big difference in the her accounts. But it turned into an exceptional marketing strategy.”