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  • People living southeast of the country trust the less that the situation will improve any time soon.

    People living southeast of the country trust the less that the situation will improve any time soon. | Photo: EFE/ Sebastian Moreira

Published 2 October 2020
Opinion

The latest report notices that the remarkable lack of trust is common to all consumers profile studied, particularly among people whose income is superior to 5 minimum wages; consumers with high educational levels, adults aged 25 to 34 years, and the capital´s residents. 

Brazil's National Industry Confederation (CNI) reported on Thursday that consumer confidence decreased to unprecedented levels in September as a result of high unemployment and a spike in inflation.

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According to CNI, the National Consumer Expectation Index (INEC) showed 42.8 points, 3.3 points below the index's historical average of 46.1 points.

The latest report notices that the remarkable lack of trust is common to all consumers profile studied, particularly among people whose income is superior to 5 minimum wages; consumers with high educational levels, adults aged 25 to 34 years, and the capital´s residents.

"Prevailing consumer confidence index declining in September. The indicator below the historical average was released today by CNI."

The CNI explains that as people's expectations have lowered, it also has decreased consumer confidence since they feel pessimistic about price development, the possibility to be employed, and their incomes. People living southeast of the country trust the less that the situation will improve any time soon.

Las month data released by the Institute of Geography and Statistics (IBGE) showed that the prices of basic Brazilian´s diet foods such as bean and rice had increased at least 20 percent. Moreover, the IBGE revealed that high prices are the cause of 80 percent of the accumulated inflation in the country.

In this sense, CNI's economic analysis director Marcelo Azevedo explained that "the increase in prices of certain key products for the consumer is affecting the perception of purchasing power and contaminating their expectations."

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