Retail Sales Of Clothing And Footwear In Brazil Dropped By 3.5%

On January 12th, Brazil's credit rating agency Serasa Experian released the latest data showing that retail sales in Brazil fell 1.3% in 2014 compared with 2014, a record low of 4.9% in 2002.

 

Data showed that the retail sales of motor vehicles and motorcycle spare parts in Brazil were the worst in 2015, while retail sales decreased by 19% compared with 2014.

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Retail sales dropped by 3.5%; third, retail sales of building materials dropped by 2.1%.

In addition, fuel and lubricants retail sales fell by 1%, electronic and computer equipment retail sales fell by 0.9%, while restaurant sales in large supermarkets also fell by 1.1%.

Since 2011, Brazil's economic growth has slowed down significantly, but has not suppressed consumer enthusiasm.

Data show that in 2012, 2013 and 2014, Brazil's retail sales increased by 6.4%, 5.2% and 3.7% respectively.

In the 2008 and 2009 when the global financial crisis broke out, Brazil's retail sales also increased by 13.2% and 6.1% respectively.

According to analysts, the retail sales in Brazil for the first time in 13 years showed negative growth for the first time in over a period of 2015, mainly due to the sluggish economy and high unemployment rate in Brazil, resulting in sharp decline in public incomes, high inflation, high interest rates on banks and a decline in consumer confidence.

On the 8 day, the Brazil Bureau of geographical Statistics announced that Brazil's inflation rate reached 10.67% in 2015, which was two times the government inflation management target of 4.5%.

The expected inflation rate is as high as 10.72%.

To curb inflation, Brazil's central bank raised its benchmark interest rate to 14.25% in July 29, 2015, a record high in 9 years.

Financial markets predict that Brazil's central bank will raise interest rates by 50 basis points again this month, raising the benchmark interest rate to 14.75%, and will increase to 15.25% by the end of 2016, given the heavy inflation pressure in Brazil.