This study uses the capability approach to undertake a multidimensional analysis of deprivation in urban areas of Brazil between 2003 and 2008 based on a four-dimensional index (living conditions, health, level of education and participation in the labour market) constructed out of 13 different indicators. Its findings indicate that a majority of the population is living in households that are not experiencing deprivation and that, of those that are, the instance of deprivation is confined to a single indicator. When the results were then compared with the income-poverty index for the different states in Brazil, the outcome confirmed that regional inequalities show up in both types of measurements. Finally, synthetic cohort data and ordinary least squares (OLS) models were used to study the relationship between personal attributes and a propensity to lapse into poverty and/or to remain poor.