Why have the proces of the basic stamples basket dropped?

Abstract

The article aimed to analyze the price fall in the capital of São Paulo, trends and their determinants. In Brazil, the isolation of agricultural impacts on consumption and investment decisions in the power of setting practices for agricultural producers. The authors emphasize the determinates of price collapse, explaining the effect of production and income and have the series of the fall in prices of basic foods. We conclude that the beneficiaries of the fall in the price of basic foods are low-income consumers and the foundation of production increases at a rate higher than the demand growth was the increase in agricultural productivity, which depends on technological development.