Brazilians are feeling the pressure on their pockets
Posted: Thu Jan 02, 2025 9:55 am
According to a survey conducted by the Genial/Quaest Institute, released in early May, 67% of respondents believe that purchasing power has fallen since 2023.
The main villain, in the perception of the interviewees, is the supermarkets: 73% of the interviewees stated that there was an increase in food prices. For 62%, the values of water and electricity bills increased and were responsible for the reduction in purchasing power, while 48% felt the increase in fuel prices.
Despite the scenario, a large proportion of participants are optimistic and expect the economy to improve by 2025 (48%). Another 30% think the trend is for things to get worse, while 19% do not see the scenario improving or worsening.
According to Serasa Experian, although the average consumer cannot individually interfere in the factors that affect purchasing power – inflation or deflation –, it is possible to curb the impacts on a daily basis.
Investing to maintain purchasing power
According to Serasa, to minimize impacts on purchasing power, it is necessary to monitor economic movements, observing aspects such as high inflation, currency devaluation, crises, changes in monetary policy and Central Bank decisions.
The main tip is to try to make your money profitable, using economic indices to your advantage. One alternative is to take advantage of the Selic interest rate and invest in Tesouro Direto to make up for losses above inflation.
The Tesouro Selic pays the total percentage of the basic interest rate – set by the Monetary Policy Committee (Copom) at 10.75% – while annual inflation is estimated at 3.69%.
According to the Brazilian Association of Financial netherlands phone number list Educators (Abefin), investing is a necessity in times of loss of purchasing power, as idle money will lose value. The recommendation is to find ways to make it yield, preferably considering fixed income.
Bank Deposit Certificates (CDBs) that pay 100% of the CDI, set at 12.32% per year, are good alternatives, as they can generate profitability and have daily liquidity, facilitating access to money.
For those who have a larger amount, which exceeds the so-called emergency reserve, it is advisable to diversify the portfolio. In variable income, exchange-traded funds (ETFs) and Brazilian depositary receipts (BDRs) are recommended by Abefin, as they have international backing. A diversified portfolio is capable of protecting the investor from possible losses.
Adapt the domestic economy
Although working with the economy to your advantage is an important step, readjusting household spending is the main guideline from Abefin president Reinaldo Domingos. For him, it is necessary for the whole family to be involved in the task of overcoming financial imbalance.
In an article published in the press, Domingos states that many families live with excess and waste that can represent up to 50% of everything spent. Practical tips to reduce the impact on purchasing power are to switch brands, change places of purchase and make real savings.
“We need to get our hands dirty. We can’t just sit around waiting for a miracle or a change in the economy that won’t happen. Therefore, spending needs to be reduced to levels that can be balanced with earnings,” he advises.
The main villain, in the perception of the interviewees, is the supermarkets: 73% of the interviewees stated that there was an increase in food prices. For 62%, the values of water and electricity bills increased and were responsible for the reduction in purchasing power, while 48% felt the increase in fuel prices.
Despite the scenario, a large proportion of participants are optimistic and expect the economy to improve by 2025 (48%). Another 30% think the trend is for things to get worse, while 19% do not see the scenario improving or worsening.
According to Serasa Experian, although the average consumer cannot individually interfere in the factors that affect purchasing power – inflation or deflation –, it is possible to curb the impacts on a daily basis.
Investing to maintain purchasing power
According to Serasa, to minimize impacts on purchasing power, it is necessary to monitor economic movements, observing aspects such as high inflation, currency devaluation, crises, changes in monetary policy and Central Bank decisions.
The main tip is to try to make your money profitable, using economic indices to your advantage. One alternative is to take advantage of the Selic interest rate and invest in Tesouro Direto to make up for losses above inflation.
The Tesouro Selic pays the total percentage of the basic interest rate – set by the Monetary Policy Committee (Copom) at 10.75% – while annual inflation is estimated at 3.69%.
According to the Brazilian Association of Financial netherlands phone number list Educators (Abefin), investing is a necessity in times of loss of purchasing power, as idle money will lose value. The recommendation is to find ways to make it yield, preferably considering fixed income.
Bank Deposit Certificates (CDBs) that pay 100% of the CDI, set at 12.32% per year, are good alternatives, as they can generate profitability and have daily liquidity, facilitating access to money.
For those who have a larger amount, which exceeds the so-called emergency reserve, it is advisable to diversify the portfolio. In variable income, exchange-traded funds (ETFs) and Brazilian depositary receipts (BDRs) are recommended by Abefin, as they have international backing. A diversified portfolio is capable of protecting the investor from possible losses.
Adapt the domestic economy
Although working with the economy to your advantage is an important step, readjusting household spending is the main guideline from Abefin president Reinaldo Domingos. For him, it is necessary for the whole family to be involved in the task of overcoming financial imbalance.
In an article published in the press, Domingos states that many families live with excess and waste that can represent up to 50% of everything spent. Practical tips to reduce the impact on purchasing power are to switch brands, change places of purchase and make real savings.
“We need to get our hands dirty. We can’t just sit around waiting for a miracle or a change in the economy that won’t happen. Therefore, spending needs to be reduced to levels that can be balanced with earnings,” he advises.