Market projects lower inflation for this year. Good news for small businesses.

The Focus Bulletin, which assesses financial market expectations regarding the Brazilian economy and was published this Monday (13), points to a decline in inflation to 4.72% by 2025. This figure is close to the fiscal target ceiling that the Central Bank is expected to pursue – which is 3% per year, with a tolerance of 1.5%. Four weeks ago, projections were at 4.83%. Sebrae expects small businesses to benefit from this movement and from the greater amount of resources available to consumers.

"Small businesses are essential because they generate more than 80% of jobs, spread opportunities, inclusion, and income. They are resilient men and women who wake up every day to face a voracious market that wasn't designed for them, but who decide to become entrepreneurs and never give up," emphasizes Sebrae president Décio Lima.

The projection follows the reduction in food prices, which have fallen for the fourth consecutive month. In September, the decline was 0.35% and the impact was -0.08 pp. In August, the decline was 0.53% .

This demonstrates the success of President Lula and Vice President Geraldo Alckmin's economic policy, which is based on distributing income to the population.

Décio Lima, president of Sebrae

Tips

Sebrae's Capitalization and Financial Services Unit has prepared some guidelines on how small businesses should react to price fluctuations in products and inputs:

1. Knowledge Entrepreneurs in the food industry (such as restaurants, bakeries, and grocery stores) tend to be most affected by fluctuating food prices. Understanding your actual financial situation and developing strategies helps you avoid, whenever possible, passing the cost on to consumers, who also suffer from rising prices.

2. Attention Invest in budget planning, closely monitoring costs and profit margins. In this context, good financial management becomes a competitive advantage. Prioritize costs: financial management and cash flow must be carefully considered. The Sebrae Planner can be a great ally in this endeavor.

3. Changes Supplier diversification and the adoption of more dynamic pricing strategies can help mitigate the effects of inflation.

4. Negotiate Renegotiate debts, supplier prices, rent, fees, and financing with financial institutions, as well as other items that weigh on the company's budget.

5. Innovation Loyalty programs and product or service differentiation can help maintain customer base.