The default rate of Brazilian consumers recorded a high of 4.78% in October 2011, compared to the same month in 2010. This is the ninth increase in a row this year, compared to 2010. According to the National Confederation of Retailers (CNDL), this is an indication that the inflationary scenario persists, exerting downward pressure on consumer purchasing power and the level of household debt. In the first ten months of 2011, the cumulative default rate is 5.21%.
Indebted, the consumer consumes much less, evaluates Roque Pellizaro Junior CNDL’s president. “Sales have really cooled down. Sales are still up, but growth is much lower considering our previous expectations because less money is left for consumption“, he said. “What worries us is that if we analyze the increase in default rates, they are not associated with increased sales,” he added.