Brazil's August retail sales rose 0.1% against a 0.7% forecast, handing the central bank cover to cut its 13.75% policy rate in November with Brent near $104. TSMC beat on earnings, and Turkey's budget gap widened.
India’s wholesale inflation jumped back into double digits as fuel and power inflation accelerated to 25.85%, widening the gap with much cooler retail CPI. Source
Brazil's August retail volumes rose just 0.1% on the month, against a 0.7% consensus, after a 0.8% drop in July. Annual growth slowed to 0.4%, against a 1.5% forecast, according to the Brazilian Institute of Geography and Statistics (IBGE). The timing is awkward for everyone except the central bank. US CPI ran at 3.7% and PPI at 6.3%, the dollar index touched an 18-month high near 102.30, and Brent sits around $104. A central bank that wants to cut into that backdrop needs some domestic weakness to point to, and Brazil just supplied it.
