Bloomberg reported last Friday that Brazil’s retail sales rose again more than expected. Retail sales went up 1,7% from the previous month, significant stronger than the 1,2% which was forecasted.
Most surprising was the increase in the sale of computer equipment which went up 15,6% compared to last year. If you take the broader index which includes automobile and construction materials, the index went up 10,2%. On a monthly basis, the broader index went up 6,5%, the biggest increase since its launch in 2007.
Good news is that the central bank remains cautious. Which is good; central banks which keep a strong eye on future inflation targeting have our preference.
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