Brazil retail sales hit record high in March

SAO PAULO, May 15 (Reuters) - Retail sales in Brazil rose 0.8% in March from February, reaching the highest level since the series started in 2000, government statistics agency IBGE said on Thursday.

The third positive result in a row came in slightly below the 1.0% increase expected in a Reuters poll of economists, amid tight monetary policy.

Six out of the eight sectors in the survey advanced in March, including pharmaceuticals, hypermarkets and supermarkets, which have more weight, according to IBGE.

"What stands out the most is the distributed profile of intersectoral growth," IBGE research manager Cristiano Santos said in a press release.

March data shows that the first quarter was one of recovery for the sector, Inter senior economist Andre Valerio said in a note.

"Nevertheless, given the restricted financial conditions, coupled with the prospect of prolonged monetary tightening and food inflation pressuring household disposable income, we expect a return to the sector's accommodation trend for the rest of the year," Valerio added.

The Brazilian central bank last week raised interest rates to 14.75%, the highest level in almost 20 years, citing sticky inflation.

On a year-on-year basis, retail sales fell 1.0%, while economists polled by Reuters expected a 0.5% decrease.

(By Sao Paulo Newsroom; tel: +5511 56447500)