Brazil Retail Sales Rise the Most in Nearly 2 Years

Retail sales in Brazil rose by 0.4% from the previous month in January of 2026, erasing the 0.4% drop in the previous month and contrasting with the median market forecasts of a 0.1% decrease. The release reflected some traction for Brazilian consumers after low private consumption negatively impacted the fourth-quarter GDP growth and forced the Brazilian central bank to signal the start of rate cuts in March. Retail volumes were sharply higher for pharmaceutical and medical goods (2.6% vs -5% in December), clothing and footwear (1.8% vs -0.2%), and retail in supermarkets (0.4% vs -0.2%). These offset the drop in books and stationery (-1.8% vs -2.3%) and office equipment (-9.3% vs 8%). From the previous year, retail volumes were 2.8% higher from the 2.3% increase in December, a fifth consecutive acceleration.

Retail sales fell 0.4% month-over-month in December 2025, after rising 1.0% in November. Six of eight core activities declined: pharmaceuticals (-5.1%), books (-2.0%), other personal goods (-1.8%), furniture and appliances (-0.7%), apparel (-0.4%), and supermarkets (-0.3%). Office and IT equipment increased 6.0%, and fuels rose 0.3%. Extended retail, which includes vehicles, construction materials, and wholesale food, dropped 1.2% month-over-month. Vehicles fell 2.4%, and construction materials declined 2.8%. Year-on-year, retail sales rose 2.3%. In 2025, the sector expanded 1.6%, marking the ninth consecutive annual increase.

Retail sales in Brazil rose by 1% from the previous month in November of 2025, extending the 0.5% increase from October and firmly ahead of market expectations of a 0.3% increase, marking the sharpest pace of expansion in nearly two years. Retail turnover was sharply higher in supermarkets and food retailers (1% vs 0% in October), furniture and household appliances (2.3% vs 0.3%), pharmaceutical goods (2.2% vs 0.4%), and books and stationery (1.5%) vs 0.9%). Conversely, retail fell for fuel and lubricants (0.6% vs 1.7%).