Abras: Household consumption drops 0.49% in September, but accumulates year-on-year increase of 3.13%

A survey by the Brazilian Association of Supermarkets showed that high inflation reduced the consumption power of families by 0.49% in September, compared to the month of August.

The study also reported that consumption in Brazilian homes, despite the fall recorded in September, maintained a positive trajectory between the months of January to September this year, accumulating a rise of 3.13%.

Also according to the survey, this positive result is the result of social programs for transferring income and also maintaining federal government employment.

In the comparison of September 2020 with September 2021, the fall in the consumption power of families was greater, reaching 1.13%. The number shows that the purchasing power of Brazilians has been decreasing

The lower food demand this month is caused by the devaluation of the real, seasonal weather factors, and high inflation, which hit families of all income groups, according to data from the Institute for Applied Economic Research (Ipea) released in October.

Roasted and ground coffee and sugar registered the highest increases in the year, with increases of 33.85% and 24.54%, respectively. Frozen eggs and chicken are also on the list of products that rose the most in the year, with 22.53% and 21.26%.

“In 12 months, inflation accumulates a high of 10.25%. When you have an increase in this indicator, the entire production chain becomes more expensive. Even gasoline has an indirect impact on the rise in food prices, as fuels are used in the transportation of products”, said professor at Fundação Getúlio Vargas (FGV), Joelson Sampaio.

Despite the lower consumption from August to September, the sector remains optimistic for the last months of the year, according to the vice president at Abras, Marcio Milan. According to him, Black Friday and Christmas should reheat the market. In the accumulated result for the first nine months of the year, the National Index of Consumption in Brazilian Homes increased by 3.13%.

“The approaching end of the year brings advantageous possibilities for consumers and merchants due to important sales seasons, such as Black Friday and Christmas. This is the time to research, pay attention to offers, promotions and increase consumption”, said Marcio Milan.