Falling prices of basic food baskets could increase demand for products from small businesses

More good news for small businesses. The price of the basic food basket decreased in 15 capitals of the country in May compared to April. The data comes from the Inter-Union Department of Statistics and Socioeconomic Studies (Dieese), which surveys the price of the food basket in 17 capitals on a monthly basis.

This means more money in the hands of families and, according to Sebrae's assessment, this movement can strengthen local commerce and, consequently, small entrepreneurs, with a possible increase in demand for their products and services.

When consumers have more resources available, it is natural that they will take advantage of the opportunity to visit stores, salons, restaurants and bars, boosting local businesses and contributing to the generation of jobs and income. For markets, the reduction in the price of basic foods can encourage the purchase of other items, increasing sales.

Giovanni Beviláqua, coordinator of Access to Credit and Investments at Sebrae.

The biggest drops were recorded in Recife (-2.56%), Belo Horizonte (-2.50%) and Fortaleza (-2.42%). “Where the reduction was most significant, consumers will have a little more breathing room in their budgets. This means that, with the cost of essential foods lower, people can direct part of the money that was previously reserved for food to other expenses”, reinforces the coordinator.

Compared to the same period in 2024, the basic food basket in May increased in 16 of the 17 capitals surveyed – in Natal, the increase was 0.77% and 8.43% in Vitória. According to the Dieese survey, between January and May, the cost of products increased in all the capitals surveyed, with rates ranging from 2.48%, in Campo Grande, to 9.09%, in Belém .

For this reason, Giovanni Beviláqua urges caution in light of the current scenario. “Despite the drop in May, the cost of basic food baskets is still high in many capitals this year, and overall inflation in the Brazilian economy continues to be a challenge. The country’s economic growth is moderate and costs for small businesses, such as energy and transportation, are still putting pressure on profit margins,” he pointed out.