Debt and changing habits weigh on Brazil's Children's Day toy sales

Brazil celebrates Children’s Day on October 12, when families often buy gifts for children.

In the 12 months to September, toy and sports goods prices fell 0.89%, while overall consumer prices rose 3.94%.

Children’s clothing and shoes also became cheaper, but lower prices have not erased pressure on family budgets.

The share of household income going to debt payments reached 29.6% in September, up from 29.3% in August.

Retail and economic representatives say high interest rates and debt are pushing families to focus on essentials and spend less on gifts.

They also point to the holiday losing attention to outings, online shopping and children’s interest in electronic items.

Some shopkeepers in São Paulo’s 25 de Março commercial district say sales are already weaker than in past years, while views on the coming days vary.

Retailers expect shoppers to be more cautious, including by choosing less expensive gifts.