Consumer confidence falls in Brazil, dragged down by joblessness, inflation

Source: Xinhua| 2020-10-02 05:22:05|Editor: huaxia

BRASILIA, Oct. 1 (Xinhua) -- Brazilian consumer confidence continues to decline due to high unemployment and rising inflation, according to a report released Thursday by the National Industry Confederation (CNI).

The National Index of Consumer Expectations (INEC) for September stood at 42.8 points, below the historical average of 46.1 points and below the last available result in December 2019.

Any outcome under 50 points on a scale of 0 to 100 is considered negative.

According to the head of Economic Analysis at CNI, Marcelo Azevedo, increases in the prices of essential goods, such as some foods, influence confidence.

"Consumers are pessimistic about the future evolution of prices, unemployment and their income," said Azevedo.

"The increase in prices of certain key products for the consumer is affecting the perception of purchasing power and contaminating their expectations," he said.

Confidence is below the 50 point threshold across all ranges of household income.

Confidence fell throughout Brazil compared to December 2019, but registered higher in the southeast, the wealthiest and most industrialized part of the country.

The Brazilian Institute of Geography and Statistics on Wednesday reported the unemployment rate stood at 13.8 percent, the highest level on record. Enditem