Retail sales in Brazil grew 0.4% month-over-month in January 2026, fully reversing the 0.4% decline recorded in December and defying the median market expectation of a 0.1% drop. The data point to a modest recovery in household spending after weak private consumption weighed on fourth-quarter GDP and prompted the Brazilian central bank to signal the start of interest rate cuts in March.
Sales volumes rose sharply in pharmaceutical and medical goods (2.6% vs. -5.0% in December), clothing and footwear (1.8% vs. -0.2%), and supermarket retail (0.4% vs. -0.2%). These gains more than offset declines in books and stationery (-1.8% vs. -2.3%) and office equipment (-9.3% vs. 8.0%).
On an annual basis, retail volumes were up 2.8% in January, accelerating from a 2.3% increase in December and marking the fifth consecutive month of faster year-on-year growth.
