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Brazil’s Middle Class Benefits the Most from Bolsonaro’s Gas Tax Cuts

  • Prices fell 0.8% for middle class, 0.3% for the poor in July
  • Bolsonaro pushing for fuel tax cuts ahead of October election
A vehicle refuels at a Petrobras gas station in Rio de Janeiro, Brazil.

A vehicle refuels at a Petrobras gas station in Rio de Janeiro, Brazil.

Photographer: Francesca Gennari/Bloomberg

Brazil’s middle class is benefiting the most from gasoline tax cuts pushed by President Jair Bolsonaro, while costlier food staples add to the pain of the poor and more expensive airfare weigh on the budget of the wealthy.  

Consumer prices plunged 0.83% for the middle classes in July, more than the 0.68% monthly fall recorded by Brazil’s benchmark IPCA index, according to data published Friday by the National Institute of Applied Economic Research. In comparison, the poorest experienced a more modest 0.34% drop in prices and the richest, a 0.42% decline.