Bloomberg – Brazil’s retail sales unexpectedly fell for the third month in a row, adding to the bad news after high inflation and sharp interest rate hikes dragged Latin America’s largest economy into recession.
Sales decreased 0.1% in October compared to the previous month, which contrasts with the median estimate of a 0.6% advance from analysts surveyed by Bloomberg. Compared to a year ago, sales plunged 7.1%, the Brazilian Institute of Geography and Statistics (IBGE) reported on Wednesday.
Brazil’s central bank is expected to announce its second consecutive 150 basis point interest rate hike later on Wednesday amid soaring cost-of-living increases. Those factors are affecting demand and led the economy to slide into a shallow recession in the third quarter as the purchasing power of consumers and businesses has been eroded.
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