Why consumption does not take off despite vaccination and reopening

  • Rafael Barifouse
  • From BBC News Brasil in São Paulo

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Among the poorest, higher unemployment further limits consumer power

The advance of vaccination and the signs of economic recovery observed in the first months of the year were not enough to prevent the consumption of Brazilians from reaching its worst level since the beginning of 2019, according to the study Consumer Insights, by Kantar consultancy.

The index, which takes into account consumption inside and outside the home, had a drop of 6% between April and June this year, which indicates a retraction compared to the previous year.

Although indoor consumption — of items such as food and cleaning and hygiene products — has grown 25%, outside the home — of items such as meals, mineral water, energy drinks, juices, sandwiches, cakes, chocolates and cereal bars — dropped 36%.

The combination led to the worst result of the survey since it started being carried out in early 2019. The index, which was positive around 4% over the past year, plummeted in the first quarter of this year and was negative at 5% . Now, it got even worse.