Brazil’s family consumption index is up 1.1 percent in January, according to the National Confederation of Commerce (CNC). While the index is at its highest level since May 2020, at 76.2 points, it remains below the satisfactory level of 100. CNC chair José Roberto Tadros says “people feel a little more secure” about their employment situation, which allows them to spend more money.
The percentage of people feeling “safe” about their employment status is slightly up, from 23.4 to 25.2 percent. Those feeling less safe amount to 28.2 percent.
High inflation and interest rates, however, are major consumption deterrents — with credit getting more expensive as consumer prices spiral. Interest rates should rise even further, as the Central Bank is expected to bump the benchmark Selic rate by 1.5 points, to 10.75 percent.
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