Business · Economy · 1 day ago
Energy costs drove much of the rise in prices in Brazil, study says
Energy costs have become a major part of prices in Brazil, from food to construction materials.
A study by Ex Ante Consultoria Econômica, commissioned by energy users’ group Abrace, tracked 48 goods and services from 2000 to June 2026.
Together, those items make up 32.6% of the basket used to calculate Brazil’s IPCA inflation index.
The study estimates that electricity, gas and fuel costs drove 68% of the price increases across those items.
For bread, it attributes about 86% of the rise from roughly 15 centavos in 2000 to nearly one real today to higher energy costs across production and transport.
Energy use is often hard to see because it is built into making, storing and moving products, as well as providing services.
The findings highlight how rising energy costs can spread through the economy, add to inflation and make businesses less competitive.
A study says energy costs accounted for 68% of the price increases across 48 goods and services in Brazil from 2000 to June 2026.
The study was conducted by Ex Ante Consultoria Econômica for Abrace, which represents large energy-consuming companies.
The 48 items make up 32.6% of the basket used to calculate Brazil’s IPCA consumer price index.
The report says energy costs contributed 86% of the increase in the price of a bread roll, from about R$0.15 in 2000 to nearly R$1.
Energy accounted for different shares of price increases across products, including 79% for long-life milk and 71% for a pair of sneakers.
- Who
- Ex Ante Consultoria Econômica conducted the study for Abrace, an association representing large energy-consuming companies.
- What
- The study examined how energy costs affected prices and inflation in Brazil.
- When
- It covered price changes from 2000 to June 2026. The article was published on October 10, 2026.
- Where
- Brazil.
- Why
- The study aimed to show families the energy costs hidden in the prices of goods and services.
This story does not have two clearly opposing sides.
People can see how much they spend on energy tariffs, buying a gas cylinder or filling up at a gas station, but they do not see the invisible bill embedded in production.
And there is hidden energy cost in everything: food, school supplies, medicines, construction products, clothing, vehicles, in the plastic cup and in the machines that made all of it—and when that energy spending rises, it spreads through the economy. That is what is happening.
A bread roll cost about R$0.15, according to the article.
The study tracked price changes for 48 goods and services.
Electricity expenses in sanitation were R$2.9 billion.
Electricity expenses in sanitation had reached R$9.1 billion, a 213% increase from 2010.
The study’s price-tracking period ended.
Folha published its report on the study.
- Study authors
- Ex Ante Consultoria Econômica
- Commissioning organization
- Abrace
- Items studied
- 48 goods and services, or 32.6% of the IPCA basket
- Share of price increases attributed to energy
- 68% across the 48 items
- Bread roll price
- About R$0.15 in 2000; nearly R$1 at the time of the article
- Sanitation electricity spending
- R$2.9 billion in 2010; R$9.1 billion in 2024
Sources
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