UPDATE 1-Brazil Aug retail sales jump, yields stable

* Brazil retail sales rise 2 percent in August from July

* Retail sales jump 10.4 percent in August from year-ago

* Monthly sales best for an August in current data series
(Recasts, adds details, yields, context)

SAO PAULO, Oct 14 (BestGrowthStock) – Brazil’s retail sales jumped
more than forecast in August but government debt yields barely
budged as investors saw the data as insufficient to prompt
another cycle of interest rate hikes.

“The numbers were stronger than expected,” said Newton
Rosa, chief economist with SulAmerica Investimentos in Sao
Paulo. “But not exceptionally so … This won’t change
investors’ strategy.”

Retail sales volumes in Brazil firmed 2 percent in August
from July (BRRSL=ECI: ), government statistics agency IBGE said
on Thursday.

Retail sales had been expected to firm 1.5 percent,
according to the median estimate of 14 economists polled by
Reuters. Forecasts ranged for growth of 1.2 to 1.9 percent.

Yields on Brazilian interest rate futures contracts
(0#DIJ:: ) changed little in early trade. The yield on the
contract due January 2012 (DIJF2: ), the most active of the
morning, inched down to 11.33 percent from 11.34 percent.

Sales jumped 10.4 percent from the year-ago period
(BRRSLY=ECI: ), the IBGE added, more than the 9.7 percent median
estimate in the Reuters poll. Forecasts ranged from 8.8 to 10.5
percent.

In the first quarter Latin America’s largest economy boomed
at its fastest annual growth rate in at least 14 years.
Economists, in turn, fretted about it overheating.

But growth has since cooled, and the central bank held the
country’s benchmark interest rate, the Selic, at 10.75 percent
at a September meeting.

Central bank policy-makers meet again next week to consider
changes to the rate, but analysts broadly see the bank holding
the Selic steady.

A number of developed economies, however, continue to
struggle.

Nominal sales, as measured by total sales receipts and
unadjusted for inflation, rose 1.6 percent month on month in
August and were up 12.8 percent from a year earlier.

Retail sales volumes, unlike total receipts via cash or
credit cards, exclude inflation which could distort
comparisons.

For the IBGE’s retail sales report see:
http://www.ibge.gov.br/home/presidencia/noticias/noticia_visualiza.php?id_noticia=1733&id_pagina=1
(Reporting by Rodrigo Viga Gaier and Brian Ellsworth; Writing
by Luciana Lopez; Editing by James Dalgleish)

UPDATE 1-Brazil Aug retail sales jump, yields stable