Market basket items presented price variations in relation to the previous year; fruits and vegetables had the highest index of price decrease
Brazilian supermarket sales grew almost 3% in the first six months of the year, according to the ABRAS (Brazilian Supermarket Association). Between May 2018 and the same month in 2019, the industry had real growth of 2.64% The ABRAS market basket items that had the highest price decrease in June were, beans (-12.56%), followed by shampoo (-3.98%), sea salt (-3.54%) and wheat flour (-1.82%).
Speaking of deflation, the IPS (Supermarket Price Index) calculated by APAS and FIPE (Foundation Institute of Economic Research), also have registered a 0.54% decrease in June 2019. “Products that Brazilians use on the daily basis had a strong price decrease in June, resulting in relief in the general price index. According to Thiago Berka, “the projection of 4% inflation in 2019 is maintained”, stated the APAS economist.
Price reduction is continuous
Only 9 out of 27 categories analyzed in June were changed due to inflation, whereas 18 presented price decrease. The good results presented by the Brazilian bean crop, between April and May, were essential for reducing the prices in the supermarkets. Moreover, the numbers are keeping the price decrease rhythm, which has been lasting for three consecutive months: 7% in April, 17% in May and 15.5% in June.
The price of the onion have dropped 4.5% in the wholesale price, while the potato continues with high prices, and for that reason, the customer have exchanged this item for similar ones or for cheaper products. Ground coffee dropped 5.17% in the year to date, reaching 0.82% deflation in June. This means that wholesale prices are being 15% lower than last year.
The best news for the customers are coming from the fruits and vegetables products, such as orange, with a price decrease of 17.5% in June, with a case costing R$21.00 this year, below the price (R$26.00) in the same month of 2018.