Consumption in Brazilian Properties ends the semester up 2.20%
- August 15, 2022
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To face inflation, consumers made more planned purchases
The Consumption Index in Brazilian Homes, measured by the Brazilian Association of Supermarkets (Abras), ended the first half with a high of 2.20%. In the comparison between June and May, the indicator increased by 0.10%. Compared to June 2021, the increase is 6.03%. All indicators are deflated by the Broad Consumer Price Index (IPCA), measured by the Brazilian Institute of Geography and Statistics (IBGE).
According to Abras, in the first half of the year, consumers opted for the supermarket’s own brand products, with a price of 20% to 30% lower, changed packaging for those with greater savings or better added value and found a variety of brands on the shelves. to compose your consumption basket.
“The intensification of offers in supermarkets and wide varieties of brands added to the extra resources injected into the economy and the drop in the unemployment rate boosted Consumption in Brazilian Homes in the first half”, says Abras.
To face high food inflation, consumers made more planned purchases, switched brands and sought more promotions, and retail intensified commercial negotiations with suppliers, expanded the number of brands and made more promotions in stores, Abras said.
“With more restricted income, consumers cannot go wrong and, therefore, they are more resistant to changing brands. However, the private label product has high quality, competitive price and helps to compose the supply basket”, explains the vice president of Abras, Marcio Milan.
According to him, the payment of the benefits package approved by the National Congress should increase consumption in homes in the coming months, with about 50% to 60% of the amounts released by the government being destined for the consumption basket.
According to data from Abras, the value of the basket of 35 consumer products (food, beverages, meat, cleaning products, hygiene and beauty items) suffered from the impact of the invasion of Ukraine, adverse weather and high costs of production and transport, and accumulated a high of 10.41%. As a result, the average price of the national basket reached R$ 773.44 in June. The most significant increases in the semester were driven by potatoes (55.81%), onions (48.13%), long-life milk (41.77%), beans (40.97%) and mozzarella cheese (36.10% ).
With the improvement in the inflation index, the increase in formal employment and the resources that began to be injected into the economy this week with the payment of the benefits package approved by the national congress, Abras revised the projections of Consumption in Brazilian Homes.
“This money will move household consumption, so growth at a moderate pace in the first half of the year should be left behind. From now on, consumption tends to be more intense and stable because the number of families has grown, the value of the benefit has increased and new aid has been created for other professional categories: truck drivers and taxi drivers”, evaluates the vice president of Abras.
According to the entity, this year, the supermarket sector, which predicted growth of 2.80% in consumption in homes, believes in a high between 3% and 3.30%. “Looking ahead, commerce has at least three important dates to boost promotions and encourage consumption in homes: Black-Friday, the World Cup and the end-of-year festivities,” said Milan.
Source: Agência Brasil