With high inflation, 64% say they have reduced spending in the last six months, says survey | Economy

Research released this Wednesday (19) by the National Confederation of Industry (CNI) shows that, with rising inflation, 64% of respondents said they have reduced spending in the last six months. Of those, half reported having made “big or very big” cuts in spending.

The survey, carried out by the FSB Research Institute, interviewed 2,015 people between April 1st and 5th. The margin of error is plus or minus two percentage points.

  • Special g1: What is inflation?
  • Understand: The effects of inflation on your pocket

According to the Brazilian Institute of Geography and Statistics (IBGE), inflation in March rose to 1.62%, highest percentage for the month since 1994, that is, the highest in the last 28 years. In the last 12 months, inflation recorded an increase of 11.30%.

Mainly driven by the increase in fuel prices, the Broad Consumer Price Index (IPCA), considered the country’s official inflation, closed 2021 with an increase of 10.06%, the worst result in six years.

>>> See the details of the inflation result in the video below:

Inflation hits lower-income families more, according to Ipea

Find out below which expenses respondents said they have cut in the last six months, according to the CNI survey:

  • 34% stopped buying construction material;
  • 29% canceled cable TV;
  • 24% stopped doing meals away from home;
  • 23% stopped buying home appliances;
  • 16% reduced fuel expenses;
  • 15% left consume fuel;
  • 15% stopped buying clothes and shoes;
  • 14% said they no longer use public transportation;
  • 12% cut their account cell.

According to the research:

  • the impact of inflation was felt in the last six months by 95% of the population;
  • to 87%, prices have risen “a lot” in the last six months.

Rising inflation in March weighed heavily on all income groups, but especially on those who earn less

Rising inflation in March weighed heavily on all income groups, but especially on those who earn less

When analyzing the results of the survey, the president of the CNI, Robson Braga, stated that there are “uncertainties” in the global scenario, which has caused fear in the economy around the world.

“The war in Ukraine has brought more uncertainty to the global economy, which drives inflation and raises fears of economic downturn around the world,” he said.

For him, given this situation, Brazil needs to adopt measures to encourage:

  • economic growth;
  • job creation;
  • increase in population income.

“The main one is tax reform. We can’t escape it,” he said.

A study by the Fiscal Citizenship Center estimates that the tax reform on consumption, discussed by the National Congress in recent decades, but which remains blocked, has the potential to increase Brazil’s GDP by at least 10% in the coming decades.

See other results of the survey released by the CNI:

  • 76% of Brazilians stated that their financial situation was affected by inflation (the most affected are people without schooling; with income of up to one minimum wage; and residents of the Northeast);
  • 66% of respondents said they believe inflation will increase in the next six months;
  • 81% said they considered the current economic situation to be as serious or more serious than previous economic crises.

Respondents also reported which spending increased:

  • 59% increased spending on electricity bill;
  • 56% increased spending on cooking gas;
  • 52% increased spending on rice and beans;
  • 51% increased spending on Water;
  • 50% increased spending on fuel;
  • 49% increased spending on fruits and vegetables;
  • 48% increased spending on Red meat.

Also according to the survey, respondents responded as follows when asked how they forecast spending in the next six months:

  • 47% said they intend to keep spending;
  • 33% said they intend to reduce expenses;
  • 5% said they intend to greatly reduce expenses.