Consumption in Brazilian homes grows 2.59% in the quarter

RIO DE JANEIRO, BRAZIL – Consumption in Brazilian homes increased 2.59% in the first quarter of the year, according to the National Consumption Index of Brazilian Homes of the Brazilian Supermarket Association (Abras), released on May 12 by the entity. The highest consumption variation in the quarter was registered in March, with a high of 6.58% compared to February. Compared to March 2021, the high is 2.41%.

“The first quarter was marked by the search for stores that operate with lower prices and the purchase of supplies concentrated in the weeks close to the receipt of the salary. For now, brand switching, product substitution, the search for more cost-effective packaging, and private labels remain strong to make up the supply basket,” explained the vice president of Abras, Marcio Milan.

According to Milan, the survey also showed that people have again reduced out-of-home consumption, cutting down on superfluous items to make the supply with the income, which is more restricted. In addition, trips to the stores were reduced, with more planned purchases, taking advantage of when the salary is received.

“Consumers are seeking to diversify their purchase channels. We have seen online shopping growing because consumers are looking for a greater benefit. In addition, they look for packaging with a lower price or the family discount, they exchange the brands they use for cheaper ones, they reason better at the time of purchase, and they also look for products with the network’s own brand.”

According to the data, the Abrasmercado basket composed of 35 products of wide consumption accumulates a high in the first quarter of the year of 5.11%, compared to the same period last year. In March, the basket registered an increase of 2.40% and went from R$719.06 (US$140) in February to R$736.34 in March. In 12 months, the increase was 15.45%.

INFLATIONARY PRESSURE

“The increase is due to inflationary pressure pulled by the transfer of production costs in the food chain, especially the increase in diesel oil prices, which impacts the freight costs in product logistics,” said Abras.

The foods most impacted by the increase were tomatoes (27.22%), onions (10.55%), long-life milk (9.34%), soybean oil (8.99%), and eggs (7.08%). The biggest drops were recorded in the prices of pork shank (-0.51%), refined sugar (-0.13%), and rear meat (-0.07%).

The South region obtained the most significant variation in average price and had the most expensive basket among all regions, up 3.38%, from R$787.85 in February to R$814.48 in March. The Southeast region recorded the second-highest variation in the basket price, up 3.16%, from R$700.00 in February to R$722.14 in March.

In the other regions, the variations in the price of the basket in March compared to February were respectively: Northeast (1.93%), North (1.84%), and Center-West (1.58%).

With information from Agência Brasil