Fear of inflation affects Brazilian optimism.
Brazil's National Consumer Expectation Index fell 1,9% in April compared to March, reaching 112,1 points. According to the survey, the decline in Brazilian optimism is a result of increased concern about price increases and future income.
CNI Agency - The National Consumer Expectation Index (INEC) fell 1,9% in April compared to March, reaching 112,1 points. This was the lowest value since August 2011, according to research released this Thursday, April 25th, by the National Confederation of Industry (CNI). Compared to April 2012, the INEC for this month decreased by 0,8%.
According to the research, the decline in Brazilians' optimism is a result of increased concern about price trends and future income. The inflation expectation index fell 5,1% in April compared to March and 1,1% compared to the same month last year. The personal income expectation index decreased 4,1% compared to March and 0,9% compared to April 2012.
"There was also a worsening in consumers' assessment of their financial situation and their indebtedness," the study states. The index of expectations regarding the financial situation fell by 3,1% and the index of indebtedness decreased by 2,5% compared to March. "The increased concern about inflation and personal income affects future demand. This compromises the recovery of economic growth," says CNI economist Marcelo Azevedo.
However, employment prospects improved in April. The unemployment expectation index increased 1,8% compared to March and 2,1% compared to the same month last year. Furthermore, the index of purchases of higher-value goods grew 0,4% compared to March. But it is still 1,1% lower than that recorded in April 2012.
Conducted in partnership with Ibope Inteligência, this edition of INEC surveyed 2.002 people in 141 municipalities between April 11 and 15.