Brazil July retail sales fall 0.8%, 1.5% below record; IBGE cites delayed rate impact

Brazilian restricted retail sales dropped 0.8% in July, leaving volumes 1.5% below the March record, with the IBGE attributing the decline to the delayed effect of interest rates. The drop follows two months of growth, but the IBGE maintains a positive outlook for 2026. This suggests consumer demand is cooling, potentially easing inflation pressures.