SAO PAULO, Nov 12 Reuters Retail sales in Brazil rose less than expected in September but recovered from a fall in the previous month, as the strength of Latin America39;s largest economy keeps in focus amidst the central bank39;s fight against inflation.

Retail sales volumes rose 0.5 in September from August, statistics agency IBGE said on Tuesday, below the 1.10 increase forecast by economists in a Reuters poll, but above August39;s 0.2 decrease.

Sales grew 2.1 from the yearearlier period, compared to expectations for a 3.70 increase in the Reuters poll.

The rise in sales volumes in September was driven by the personal use and domestic products segment, which rose 3.5, IBGE said.

These results indicate that retail sales have resumed their growth trend, after a momentary drop in August, said PicPay economist Igor Cadilhac, adding that a heated job market and good credit conditions will keep supporting consumption.

Brazil39;s central bank accelerated its monetary tightening pace at its meeting last week, going for a 50 basispoint hike that pushed rates to 11.25.

Strong economic activity throughout the year, a tight labor market, fiscal concerns and a weakening Brazilian real against the U.S. dollar have been pushing up inflation expectations in Brazil.

Reporting by Luana Maria Benedito; Editing by Chizu Nomiyama

Source Reuters