Basic Food Basket: An Economic Analysis

Abstract

Introduction: The Law nº 185 of January 14, 1936 established that the minimum wage would be able to satisfy the normal needs of food, housing, clothing, hygiene, and transportation of an adult worker, without distinction of gender, per day of service. The basic food basket was designed to meet the basic nutritional needs of a family unit composed of 2 adults and 2 children. The calculation of the basic food basket is relevant to understand market practices and food price policies, and their impact on consumption behavior and the diet of the Brazilian family. Such analysis is particularly relevant during the current inflationary framework experienced in Brazil. Objective: This study aimed to investigate the selling prices of the foods that make up the basic food basket and quantify the equivalent hours of work needed to acquire the set. Development: An extensive price survey was conducted in distribution centers and commercial establishments in Belo Horizonte, Minas Gerais, allowing the establishment of the average value necessary and the minimum work hours to acquire a basic basket unit. Results: It was evidenced that the composition of the foods included in the basic food basket burdens the family budget too much. Conclusion: There is a need to establish a reformulation of the variety and diversity of foods present in the basic food basket to provide a more accessible, economical, and flexible dietary standard to the nutritional needs of the Brazilian family unit.