Price of Basic Food Basket in Brazil and the World (2003-2017): Causes and Consequences

Aims: Objective this work is to understand the price dynamics of foods basket products in Brazil and the world, based on multivariate analysis, for 14 years, with data from governmental and non-governmental organizations.

Methodology: Data used for world food prices were taken from official documents provided by governmental and non-governmental organizations. The data were submitted to statistical analysis by Microsoft Excel 2016® and Minitab 16®. The statistical model used in the work is multiple linear regression. When significant linear regression was found, the parameters were compared by means of simple linear regression analysis, a significance of 5% probability (P<0.05) was considered.

Results: The results showed that the items that most cost the foods basket in the world are meat, fruits, and vegetables, and it was noticed that with each increase of 1 dollar in the price of these products, increased 2 dollars in the price food basket. And in Brazil it would not be different, these same products represented an increase in the price of the basic food basket in more than 300% (adding meat) and 110,67% (adding fruits and vegetables).

Conclusion: Concluding that the increase of the basic food basket in Brazil and in the World is directly correlated with meat, fruits, and vegetables. Being an added value caused by the high cost of investment in these sectors, which require very high investment.