(Adds details, background) BRASILIA, Nov 10 (Reuters) - Retail sales in Brazil fell for a third straight month in September as rising unemployment continued to hurt consumption, pushing back a long-awaited recovery from a two-year recession. Retail sales volumes excluding cars and building materials fell 1.0 percent in September from August after seasonal adjustments, as expected by economists in a Reuters poll, statistics agency IBGE said on Thursday. Sales fell 5.9 percent from the year-earlier period , down from an annual decline of 5.5 percent in August but slightly better than expectations for a 6.05 percent drop in the Reuters poll. Sales dropped in six of the eight sectors covered by IBGE, including supermarket and fuel sales. "Supermarket and food and beverage sales have been dragged down by the continued drop in household incomes and by the increase in food prices, which has been above the average," IBGE said in a statement. A broader measure including automobile and building material sales, which are considered to be more volatile, fell 0.1 percent in September from August, IBGE said. Brazil's economy has gone through its worst recession in decades since 2014, with about 12 million unemployed. Economists expect a mild recovery to start in 2017 as the central bank gradually cuts interest rates from a decade high. (Reporting by Silvio Cascione; Editing by Andrew Heavens)
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