*

Petrobras shares fall after fuel sales hurt earnings

*

Argentina inflation slows to 8.8% in April

*

Chile raises FY GDP growth forecast to 2.7%

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Both Latam stocks and FX indexes flat

(Updated at 1931 GMT)

By Johann M Cherian and Shashwat Chauhan

May 14 (Reuters) - The currencies of Colombia and Chile

outperformed peers in Latin America on Tuesday, ahead of a U.S.

inflation data print, while investors parsed minutes from

Brazil's central bank meeting and latest consumer prices out of

Argentina.

As of 1931 GMT MSCI's index for Latin American currencies

was flat as investors were in a wait and see

mode in the lead up to the U.S. consumer inflation print which

could dictate the Federal Reserve's monetary policy trajectory

and that of the greenback.

Still, Colombia's peso strengthened 1.2% to over a

month's high. A Reuters poll showed economic growth in the

region's fourth largest economy was seen at 0.7% in the first

quarter, from a year earlier, with domestic consumption

moderating and inflation and interest rates still high.

Chile's peso rose 0.7% to over a three month high.

The copper producer's government raised its annual economic

growth forecast, and also lifted its full-year inflation

forecast to 3.8%, from 3.1% previously.

Also aiding Chilean peso's rise was U.S. copper futures,

which stormed to a record high.

Brazil's real climbed 0.4% after minutes from the

local central bank's last policy meeting showed the members who

voted for a larger interest rate cut last week remained

committed to pursuing the inflation target and the necessary

terminal interest rate to achieve this convergence.

The decision to slow down the pace of rate cuts had sent the

real lower by over 1% on concerns of upcoming decisions being

influenced by politics. The real is up 1.2% month-to-date but is

still underperforming peers.

"All members appeared to be in agreement that the economy

and labor market are faring better than previously expected and

that the government's changes to the fiscal framework were a

cause for concern," said William Jackson, chief emerging markets

economist at Capital Economics.

Separately, Brazil's Treasury has confronted waning demand

for its inflation-linked bonds despite offering higher rates

amid global and domestic uncertainties, hampering efforts to

lengthen the maturity of the country's debt.

On the equities front, MSCI's gauge for Latam stocks

was muted, while Argentina's MerVal index

rose 1.8% after data showed consumer prices in the

embattled economy rose less-than-expected in April.

Regional heavyweight Brazil's main stock index added

0.3%, though gains were limited by Petrobras' 1.5%

drop after the energy giant posted worse-than-expected results

for the first quarter, hurt by less profitable fuel sales.

Hapvida jumped over 10% after the Brazilian

healthcare operator posted a higher first-quarter adjusted net

profit, while Natura &Co shed over 8% after the

cosmetics maker reported a wider quarterly net loss.

Key Latin American stock indexes and currencies:

Latin American market

prices from Reuters

Stock indexes Latest Daily %

change

MSCI Emerging Markets 1082.28 0.33

MSCI LatAm 2496.56 0

Brazil Bovespa 128499.39 0.27

Mexico IPC 57200.46 -0.92

Chile IPSA 6738.37 0.64

Argentina MerVal 1402775.12 1.876

Colombia COLCAP 1405.57 1.09

Currencies Latest Daily %

change

Brazil real 5.1302 0.41

Mexico peso 16.8334 -0.20

Chile peso 916.2 0.68

Colombia peso 3840 1.15

Peru sol 3.7058 0.22

Argentina peso 885.0000 -0.06

(interbank)

Argentina peso 1050 -0.48

(parallel)