Brazil retail sales post surprise rise in September
SPY•Brazilian retail sales rose 0.2% month over month and 1.7% year over year in September, beating economists’ expectations of a 0.2% decline and a 1.0% gain, respectively.
1. Sales rise unexpectedly
Brazilian retail sales volumes rose 0.2% in September from the previous month, with five of the eight sectors tracked by statistics agency IBGE posting gains. Economists polled had expected a 0.2% decline. Year over year, sales increased 1.7%, above expectations of 1.0%.
2. Rates weigh on demand
High interest rates have weighed on Brazil’s economy this year as central bank policymakers seek to bring inflation back to the 3% target. Last week, the bank ended five straight rate cuts and held its benchmark Selic rate at 13.75% as it grappled with a worsening inflation outlook.
