Brazil June retail sales edge higher from May

Retail sales volumes in Brazil rose 0.2 percent in June from May, the government statistics agency IBGE said on Thursday.

Retail sales boomed in 2010 as Brazilian shoppers helped the economy grow 7.5 percent, its fastest pace in 24 years. But those same shopping sprees helped push prices higher, and inflation has been above the central bank's target range since April.

Brazilian consumers have drawn attention from abroad, as well, with Australian mall operator Westfield Group this week announcing a 50 percent stake in Almeida Junior Shopping Centers for $447 million.

But some analysts are worried that Brazil's shoppers are loading up on debt, thanks to relatively cheap credit and splurging on designer jeans, new cars and other high-end items.

June's retail sales jumped 7.1 percent from the year-earlier period, the IBGE added, more than the 6.6 percent median estimate in the Reuters poll. Forecasts ranged from a gain of 5.8 percent to 7.5 percent.

The IBGE added that nominal sales, as measured by total receipts and unadjusted for inflation, climbed 0.6 in June from the previous month and surged 12.1 percent from a year earlier.

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

Copyright Reuters, 2011