(Updated at 1513 GMT)

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Brazil retail sales slip in June

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Argentina inflation due later in the day

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Rouble reverses early losses

By Lisa Pauline Mattackal

Aug 14 (Reuters) - Latin American stocks and currencies

largely rose on Wednesday after a closely watched U.S. inflation

print came in broadly in line with expectations, keeping a

September start to policy easing by the Federal Reserve firmly

on the table.

The U.S. inflation report showed consumer prices rebounded

as expected in July, but the trend remained consistent with

subsiding inflation.

The signs of moderation in price pressures kept a September

start to U.S. policy easing alive, boosting emerging market

assets that typically benefit from lower borrowing costs in the

world's largest economy.

MSCI's index of stocks in Latin America

jumped 0.9%, while an index of currencies in the region

rose 0.7% against a weaker dollar. Both

were trading at their highest levels in more than a month.

"The data came in pretty much in line ... it gives the Fed

space to not have to make any panicked moves," said Ben Pace,

CIO of Cerity Partners.

Mexico's peso led regional currency gains, jumping

0.8%.

Meanwhile, Brazil's real gained 0.1% against the

dollar. Data showed June retail sales volumes slipped 1%, down

for the first time in six months.

The U.S. data was a welcome signal as worries about a

slowdown in the world's biggest economy have sent tremors

through emerging markets recently, even as investors look to the

start of the Fed's easing cycle.

However, traders trimmed bets on a larger-than-expected

interest-rate cut of 50 basis points, according to CME's

FedWatch.

Stocks in Argentina and Brazil led regional

equity gains, rising 2.1% and 0.3%, respectively, with the

Merval index touching a three-week high.

Chinese industrial output and retail sales data are on deck

Thursday, and will be closely watched for signals on demand and

likely government stimulus in the world's second largest

economy.

"We've decreased our weighting to emerging markets, there's

concern about a full weighting because China's so important to

whatever else happens in the emerging market space," Pace said.

Elsewhere, Bank of Mexico Deputy Governor Jonathan Heath

said he viewed the central bank's recent interest rate cut as

premature given rises in headline inflation.

Argentina's peso was little changed on official

markets ahead of an inflation print later in the day.

Argentina's annual inflation stands at around 271%, the highest

in the world.

Analysts predict July inflation will come in at 4% on a

monthly basis, the lowest since the start of 2022.

Shares of Colombia's Ecopetrol lost 0.9% after the

state-owned oil firm on Tuesday reported a 17% fall in

second-quarter net profit.

Elsewhere, Russia's rouble recouped ground,

strengthening back below 89 per dollar. The currency has been

battered in the past week as Ukraine launched a cross-border

attack on Aug. 6.

HIGHLIGHTS

** Turkey's central bank expected to hold rates steady in

August

** BHP removes striking workers at huge Chile copper mine,

output at risk

** Brazil Senate committee again postpones vote on central

bank financial autonomy

Key Latin American stock indexes and currencies

MSCI Emerging Markets 1077.15 0.57

MSCI LatAm 2296.27 0.93

Brazil Bovespa 132805.8 0.31

Mexico IPC 53731.09 0.11

Chile IPSA 6303.45 -1.03

Argentina Merval 1626192.1 2.167

5

Colombia COLCAP 1348.04 0.31

Currencies Latest Daily %

change

Brazil real 5.4471 0.12

Mexico peso 18.8457 0.8

Chile peso 929.34 0.12

Colombia peso 4018 0.33

Peru sol 3.7356 -0.19

Argentina peso (interbank) 940.5 -0.053163

211

Argentina peso (parallel) 1335 1.8726591

76