São Paulo cost of living falls in August due to lower energy and fuel prices

The cost of living in the Metropolitan Region of São Paulo fell by 0.04% in August, according to research by the Federation of Trade in Goods, Services and Tourism of the State of São Paulo (FecomercioSP). The decline was primarily driven by lower prices for electricity and fuels, which significantly impacts lower-income households.

Specifically, electricity bills dropped by 7.42%, while ethanol and gasoline prices decreased by 4.6% and 1.2%, respectively. The classes D and E saw the largest decreases in cost of living at 0.14% and 0.07%. While monthly figures showed relief, the 12-month accumulated inflation for classes D and E remains higher than that of classes A and B.

FecomercioSP noted that the reduction in electricity costs may be partially due to a temporary bonus from Itaipu, suggesting the relief could reverse in coming months.