With a tight budget, one in four people in the country cannot pay all their bills at the end of the month. The finding is from a survey by the National Confederation of Industry (CNI) in partnership with the FSB Research Institute, which points to a reduction in spending on leisure, clothing and travel.
According to the survey, getting out of the red is getting harder and harder. This is because only 29% of Brazilians save, while 68% cannot save money. Despite this, 56% of respondents believe that the personal economic situation will be a little or much better until December.
The survey also showed that 64% of Brazilians have cut spending since the beginning of the year and 20% took out a loan or contracted debt in the last 12 months. In relation to specific situations, 34% of respondents delayed electricity or water bills, 19% failed to pay their health plan and 16% had to sell something to pay off debts.
Other habits were affected by inflation. According to the survey, 45% of Brazilians stopped eating out, 43% reduced spending on public transport and 40% stopped buying some food.
Among those who reduced consumption, 61% believe in an improvement in personal finances in the coming months. The optimism, however, will not be reflected in higher consumption. Only 14% of the population intend to increase spending by the end of the year.
Bargain
Among the items that weighed the most on respondents’ pockets in the last six months, cooking gas leads, with 68% of citations. Then come rice and beans (64%), electricity bills (62%), red meat (61%) and fruits and vegetables (59%). Fuels appear in sixth place, with 57%. In the case of food, the perception of high prices for items such as rice, beans and red meat increased by more than 10 percentage points in relation to the previous survey, in April.
With the rise in prices, the population is resorting to an old habit: haggling. According to the survey, 68% of respondents admitted to having tried to negotiate a lower price before making a purchase this year. A total of 51% paid the purchase in installments on their credit card, and 31% admitted to “buying on credit”. High interest rates are making credit less attractive. Less than 15% of Brazilians resorted to overdraft, payroll-deductible credit or loans from other people.
According to the president of the CNI, Robson Andrade, the aftermath of the covid-19 pandemic and the war in Ukraine compromised the country’s economic recovery. The acceleration of inflation led to high interest rates, which has discouraged consumption and investments. On the other hand, says Andrade, unemployment is falling, and the average income of the population is gradually recovering, which gives encouragement for the coming months.
The survey, commissioned by CNI to Instituto FSB Pesquisa, is the second carried out in the year focusing on the economic situation and consumption habits. 2,008 citizens were interviewed in person, in all units of the Federation, from the 23rd to the 26th of July.
