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Burning cheaper, eating pricier: How cigarettes became more affordable than food in Brazil (2012–2023)
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1
Tobacco Control, ACT Promoção da Saúde / ACT Health Promotion, Rio de Janeiro, Brazil
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Boarder of Director, ACT Promoção da Saúde / ACT Health Promotion, Rio de Janeiro, Brazil
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Department of Economics, Strong Business School, Sao Paulo, Brazil
Publication date: 2025-06-23
Tob. Induc. Dis. 2025;23(Suppl 1):A347
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ABSTRACT
BACKGROUND: Implementing FCTC Article 6 is widely recognized as the most cost-effective strategy for reducing smoking prevalence and related health burdens. Despite Brazil’s strong adherence to WHO recommendations on tobacco tax burdens, by 2023, the country had the second-lowest cigarette prices (CP) in the region. Since the minimum price (MP) policy was frozen in 2016, cigarettes have steadily become more affordable compared to 2012, undermining public health objectives. While healthy staple foods are vital for food security and must remain affordable, tobacco products, due to their harmful externalities, should increase in price at a faster rate.
METHODS: Data on inflation (IPCA-General), domestic food prices, and CP were collected. In 2012, Brazil introduced a MP policy for cigarettes, which increased by 0.50 BRL per year until 2015. However, from 2016 onward, the MP remained frozen. The minimum CP was also compared with the cost of a basic food basket.
RESULTS: Between 2012 and 2016, CP increased nearly three times faster than the IPCA-General. From that point until 2023, domestic food inflation surpassed the IPCA-General, while CP increased at a slower rate. Between 2016 and September 2023, the cost of the basic food basket increased by 64.6%, whereas the minimum CP remained unchanged. By 2018, one food basket could buy 72.2 packs of cigarettes, but by 2023, it could buy 133.8 packs—an increase of 73.3%.
CONCLUSIONS: These findings reveal that cigarettes have become increasingly affordable relative to essential goods, reflecting a failure of public policies to keep harmful products less accessible. This evidence played a pivotal role in Brazil’s tax reform, finalized in 2024, which introduced selective taxes on health-harming products, including tobacco, alcohol, and sugary beverages, along with annual inflation-based price adjustments. This reform aligns with global best practices and aims to promote public health while reducing tobacco consumption.