Retail sales in Brazil rose by 0.4% from the previous month in January of 2026, erasing the 0.4% drop in the previous month and contrasting with the median market forecasts of a 0.1% decrease. The release reflected some traction for Brazilian consumers after low private consumption negatively impacted the fourth-quarter GDP growth and forced the Brazilian central bank to signal the start of rate cuts in March. Retail volumes were sharply higher for pharmaceutical and medical goods (2.6% vs -5% in December), clothing and footwear (1.8% vs -0.2%), and retail in supermarkets (0.4% vs -0.2%). These offset the drop in books and stationery (-1.8% vs -2.3%) and office equipment (-9.3% vs 8%). From the previous year, retail volumes were 2.8% higher from the 2.3% increase in December, a fifth consecutive acceleration.