UPDATE 1-Brazil retail sales fall in August - IBGE

(Adds details from IBGE statement)

Oct 6 (Reuters) - Brazilian retail sales fell in August from the previous month and compared to a year ago, as Latin America's largest economy struggles to recover from the effects of the COVID-19 pandemic, according to IBGE, the government's official statistics agency.

IBGE said on Wednesday that Brazilian retail sales fell by 3.1% in that month from July, and by 4.1% in an annual comparison.

The slump comes as a surprise, as analysts in a Reuters poll had predicted a 0.7% monthly increase in retail sales for August, and a 2% rise in sales from the same month a year ago.

IBGE said sales of furniture and home appliances fell by almost 20% in August from the same month last year, weighing on the indicator.

The agency also said Brazilians are buying less food and beverages, noting supermarket sales fell by 4.6% in August from the same year ago month.

(Reporting by Camila Moreira and Ana Mano; editing by Philippa Fletcher)