Brazil’s January Retail Sales Rise Above All but Two Estimates

(Bloomberg) — Brazil’s retail sales in January unexpectedly rose, as the central bank continues to raise rates in the world’s second-biggest emerging market. Swap rates jumped. Sales rose 0.8 percent after a 2.6 percent decrease in December, the national statistics agency said in Rio de Janeiro. That was above all but two estimates from 33 economists surveyed by Bloomberg, whose median forecast was for a 0.5 percent drop. President Dilma Rousseff’s new economic team is tightening both fiscal and monetary policies. Whereas higher taxes and regulated prices aim to fortify fiscal accounts, the highest borrowing costs in six years are designed to rein in inflation. Rousseff has said that the adjustment is laying the foundation for the next phase of sustainable growth. Swap rates on the contract due January 2017 rose 20 basis points, or 0.20 percentage point, to 13.98 percent at 9:18 a.m. local time. The real weakened 1.2 percent to 3.2041 per U.S. dollar. Sales of food, beverages and tobacco at hypermarkets and supermarkets rose 0.3 percent after a revised 0.2 percent decline in December. Sales of office equipment and materials rose 12.3 percent after a revised 7.6 percent decline the previous month. Sales of furniture and appliances increased 2.4 percent after

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