Brazil retail sales beat forecasts in January

SAO PAULO, March 11 (Reuters) - Brazil's retail sales volumes exceeded expectations and returned to positive territory in January, data from government statistics agency IBGE showed on Wednesday, despite high interest rates.

• Sales were up 0.4% in January from the previous month, while economists in a Reuters poll expected a 0.1% decline.

• January's result followed a 0.4% drop in December.

• Four of the eight sectors surveyed posted monthly gains, IBGE said.

• Sales also grew 2.8% from the year-earlier period, compared to expectations for a 1.65% increase in the Reuters poll.

• High borrowing costs have weighed on consumption in Brazil, with interest rates currently at a near two-decade high of 15%.

• Brazil's retail sector remains in a gradual recovery but the 2026 outlook is tilted to the downside, said Andres Abadia, chief Latin America economist at Pantheon Macroeconomics.

• "Retail activity likely will remain subdued while policy rates stay elevated," he said.