Supermarket sales rise 3.9% in May

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Sales at Brazilian supermarkets increased 3.93% in May from the same month in 2025 and rose 2.23% from April, according to the Brazilian Supermarket Association (Abras). In the first five months of 2026, sales were up 2.47%. The performance was driven by the release of the first batch of income tax refunds, totaling R$16 billion, the advance payment of the annual bonus to retirees and pensioners covered by Brazil’s National Social Security Institute (INSS), amounting to R$78.2 billion, and stronger consumer spending during the Mother’s Day shopping period. According to Abras Vice President Márcio Milan, the formal labor market remains one of the main factors supporting household consumption despite high interest rates and a slower pace of formal job creation. “The number of formally employed workers remains at a high level, helping provide greater predictability for household budgets and supporting consumer spending,” he said. Despite the increase in sales, prices continue to weigh on consumers’ budgets. The Abrasmercado basket, which tracks the prices of 35 widely consumed products, rose 2.16% in May to R$854.91, bringing the increase for the year to 6.82%. Among the products that contributed most to the increase were beans, whose prices rose 6.44% in May and 41.09% in the year to date, and long-life milk, which was up 22.33% in 2026. Fresh produce, including potatoes, tomatoes and onions, also posted significant price increases. For the second half of the year, the association is monitoring factors that could affect food supply chain costs and consumer prices. Milan said oil price volatility amid geopolitical tensions could increase transportation and distribution costs. Abras is also tracking the impact of more adverse weather conditions, including higher temperatures associated with the El Niño climate pattern, on agricultural production. The association is also monitoring weather-related effects on crops such as potatoes, tomatoes and onions, and is preparing an assessment of the FIFA World Cup’s impact on household consumption.