Supermarket consumption drops 1.15% in July compared to July 2020, says Abras – Época Negócios

inflation, supermarket (Photo: Tânia Rêgo/Agência Brasil)

The vice president of the Brazilian Association of Supermarkets (Abras), Marcio Milan, said that price increases are a global issue and not just a Brazilian issue (Photo: Tânia Rêgo/Agência Brasil)

The National Index of Consumption in Brazilian Homes (INC) had a drop of 1.15% in July, compared to the same period in 2020, reported on Thursday, 9, the Brazilian Association of Supermarkets (Abras).

In the accumulated result for the year, from January to July, there was an increase of 3.24% compared to the same period in 2020. In the comparison of July 2021 with the previous month, there was an increase of 4.84%. With regard to prices, the high of Abrasmercado (a basket of 35 consumer products) was 0.96% in July, compared to an increase of 0.12% in the same month of 2020. In the accumulated result for the year, the high price is 5.29%.

The vice president of the Brazilian Association of Supermarkets (Abras), Marcio Milan, said that the price increase is a global issue and not just a Brazilian one. However, he draws attention to the fact that the increase in the price of some products, such as rice, is starting to be studied by the association.

A study developed by the FIA ​​showed that the production of this food is aimed at the domestic market in Brazil. “In 2017, the decision was taken to no longer have regulatory stocks,” recalls Milan. He claims that without this possibility of regulation by the government, prices are more volatile.

Milan also said that there is an increase in product brands in supermarkets, which increases the variety of prices and allows for better negotiations for supermarkets.

Projections

The vice president at Abras stated that the forecast of 4.5% growth for the sector in 2021 is maintained.

He highlighted that the countrys economic recovery, advances in economic reforms by the government, as well as the promotional appeal of the second half of the year, are accounted for in this forecast of annual high for the sector. Milan also recalled that companies in the sector have more openings and investments that can yield results in this second half of 2021.

If these levers do not prove to be real, the vice president says that the growth forecast may be revised.