Brazil: Household consumption grew 2.02%, reveals survey

RIO DE JANEIRO, BRAZIL – Consumption in Brazilian homes registered a drop of 3.47% in May compared to April. Compared to the same period in 2021, there was an increase of 0.39%. The year-to-date figure shows an expansion of 2.02%.

The Brazilian Supermarket Association (Abras) released the data on July 14 in São Paulo. The drop in inflation in May reflected a lower variation in the food basket prices.

According to the institutional vice-president of Abras, Marcio Milan, the expectation is that the reduction of VAT on fuel, which impacts freight, the drop in unemployment, and the new resources that should be injected into the economy as a result of the Proposed Amendment to the Constitution – the so-called PEC of Benefits – will contribute to consumption at home.

“We are confident that market analysts are signaling inflation at a lower level next month, which may decrease the price of the food basket,” said Milan.

BASKET

According to data from Abras, the value of the 35 products of broad consumption (food, beverages, meat, cleaning products, hygiene, and beauty items) was affected by the inflation drop in May. The variation in May was 0.94%, the lowest since January.

As a result, the average price of the national basket went from R$758.72 (US$140) in April to R$765.82 in May. In the year to date, there has been an increase of 9.32%, and, in 12 months, the variation was 17.2%.

The highest prices from January to May were for beans (28.46%), long-life milk (28.04%), soybean oil (22.57%), wheat flour (21%), roasted and ground coffee (14.63%), spaghetti pasta (12.12%), margarine (8.94%), rice (2.59%), and sugar (0.61%).

In the opposite direction are beef cuts, which dropped in May due to low demand: hind (-0.84%) and fore (-0.07%). However, the year-to-date figures for these two items were 4.84% and 4.87% higher.

In the hygiene and beauty group, the products with the greatest positive variation in prices were soap (12.64%), shampoo (6.31%), toothpaste (6.24%), and toilet paper (5.26%).

In the cleaning category, the biggest variations were in washing powder (10.62%), liquid dishwashing detergent (6.24%), disinfectant (4.78%), and bleach (4.66%).

REGIONS

The South region presented the greatest variation in the average price of the basket, up 2.1%, from R$842.49 in April to R$860.15 in May. In 12 months, the variation is 21.22%, the highest among the five regions in the country.

The Southeast region had a 0.1% decrease. The average price of the basket fell from R$748.05 in April to R$ 747.31 in May. In the last 12 months, the variation has been 19%.

In other regions, the accumulated variations over the last 12 months were: Northeast (18.17%), Center-West (15.35%), and North (12.03%).

With information from Agência Brasil

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