Brazil’s Household Consumption on the Rise

Brazilian households saw a 2.89% increase in consumption in October compared to the previous month, as reported by the Brazilian Association of Supermarkets (Abras).

This growth also shows a 0.61% rise from October of the previous year, accumulating a 2.64% increase for the year.

The data encompasses various retail formats, including cash and carry, conventional supermarkets, and e-commerce.

All figures are adjusted for inflation using the National Consumer Price Index (IPCA) from the Brazilian Institute of Geography and Statistics (IBGE).

Abras’ Vice President, Marcio Milan, attributes this rise to new store openings and increased promotional activities.

He highlights that such promotions, combined with stable income and minor fluctuations in household supply prices, typically boost consumption in the latter half of the year.

Between January and November, the retail sector expanded with 573 new and re-launched stores.

Most of these are supermarkets and cash-and-carry stores. This expansion indicates a growing retail market in Brazil.

Year-long price drops in essential items

Despite this monthly increase, Abras reports significant year-long price drops in essential items.

Decreases in products like soy oil, beans, beef, chicken, and milk led to a 6.43% reduction in the cost of a typical household basket since January.

In October, the cost of a 35-item basket of commonly used products slightly increased by 0.10%.

This basket includes food, beverages, meats, cleaning products, and personal care items. Specific items like potatoes, onions, rice, and beef saw notable price increases.

In contrast, the dairy basket experienced the largest decrease, with significant drops in milk and cheese prices.

Other basic items like beans, soy oil, and coffee also showed price decreases. This trend reflects varying price changes across different product categories.

In the hygiene and beauty segment, soap and shampoo prices dropped, while toilet paper and toothpaste prices increased.

Cleaning products like powdered detergent and dish soap also saw price decreases.

This overall trend demonstrates a dynamic retail environment in Brazil, marked by fluctuating prices and growing consumer demand.

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