Retail sales in Brazil surprise with a 0.6% increase in November

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BRASILIA, Jan 14 (Reuters) – Brazilian retail sales rose in November after a monthly decline was expected, official figures showed on Friday, even as more than half of the businesses assessed posted a result negative over the period with double-digit inflation dragging on. consumption.

November’s seasonally-adjusted monthly rise of 0.6% from October beat the median forecast for a 0.2% decline in a Reuters poll of economists.

Government statistics agency IBGE also revised the October indicator to a 0.2% rise from a previously reported 0.1% fall.

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The IBGE said month-over-month sales fell in five of eight categories surveyed in November. The general result was however driven by the growth in sales of hypermarkets, supermarkets, food products, beverages and tobacco, up 0.9% compared to the previous month.

On an annual basis, the 4.2% fall in November was less than the 6.5% drop predicted in the poll.

Retail sales rose 1.9% from January-November last year, showing the same growth in the 12 months to November, and slowing from the advance in 2.6% in the 12 months to October, indicating a weaker pace of sales, IBGE mentioned.

On a broader basis, including cars and building materials, retail sales in November rose 0.5% from the previous month, marking the first gain after three consecutive declines, the IBGE said. So far this year, the increase on the same basis was 5.3%.

Brazil’s annual inflation hit a six-year high of over 10% in 2021, pushing the central bank into one of the world’s most aggressive rate hike cycles last year. In December, the monetary authority raised its benchmark interest rate to 9.25% from 2% in March and announced further tightening for this year. Read more

Analysts said higher prices and borrowing costs will slow consumer spending, helping to slow Latin America’s biggest economy in 2022.

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Reporting by Marcela Ayres Editing by Toby Chopra and Mark Potter

Our standards: The Thomson Reuters Trust Principles.

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