*

Brazil inflation speeds up ahead of central bank rate

decision

*

Markets monitor election developments in oil-rich

Venezuela

*

Latam stocks down 0.3%, FX off 0.6%

(Updated at 3:33 p.m. ET/ 1933 GMT)

By Johann M Cherian and Shashwat Chauhan

July 25 (Reuters) - Currencies of copper-producing

nations in Latin America fell on Thursday as prices of the red

metal remained under pressure, while Brazil's real edged up

after an unexpected uptick in domestic inflation.

Brazil's real inched up 0.2% after data showed

consumer prices in the region's biggest economy rose more than

expected in the month to mid-July, driven by higher

transportation and housing costs, firming bets that the local

central bank would stay put on borrowing costs later in the

month.

Referring to the data, analysts at Citi wrote that it

"suggests still uncomfortable inflation pressures, reinforcing

our higher-than-consensus inflation forecast of 4.2% YoY by

year-end and our call that Copom should remain muted for much

longer, with Selic at 10.5%."

The real is the top underperformer among major economies in

the region, down over 16% year-to-date following a selloff

towards the end of the second quarter on concerns around fiscal

instability in the country.

Copper producers Peru's sol weakened 0.3% and Chile's

peso slipped 0.3% as prices of the red metal dipped below

$9,000 per metric ton for the first time since April on funds

selling.

Mexico's peso slipped 0.4%, extending losses after

hitting a three-week low in the previous session when electric

vehicle maker Tesla's CEO Elon Musk cautioned against

investing in the country if Donald Trump wins a second U.S.

presidency and imposes heavy tariffs on vehicles produced in

Mexico.

Concerns around judicial reforms supported by Mexican

President-elect Claudia Sheinbaum and potential negative impact

on trade, immigration and security between the U.S. and Mexico

have weighed on the peso recently.

Oil producer Colombia's peso edged up 0.2% in thin

trading, while MSCI's gauge for regional currencies

slipped 0.3%, after notching its steepest

one-day drop in a week on Wednesday.

On the equities front, MSCI's index tracking regional

bourses fell 0.6% to hit over a three-week low,

with Brazil's Bovespa slipping 0.3%, weighed down by the

real estate sector.

Mexico's main index dipped 0.6%, while Argentina's

MerVal shed over 2%.

Shares of Mexico's Becle, the world's largest

tequila producer, were last up 2.6% despite reporting 62.5% drop

in its second-quarter net profit, while Cemex, one

of the world's largest cement producers, reported a slight dip

in its second-quarter net profit. Its shares were last up around

5.3%.

Attention will also be on upcoming presidential elections in

Venezuela on Sunday.

HIGHLIGHTS

**

Brazil government

mulls 'tougher measures and sanctions' on Vale, minister

says

** Chile's Boric calls on

Venezuela

to guarantee fair vote

**

Mexico

will have good relations with US regardless who wins

election, says Sheinbaum

Key Latin American stock indexes and currencies:

Latest Daily % change

MSCI Emerging Markets 1074.91 -0.7

MSCI LatAm 2189.32 -0.61

Brazil Bovespa 126061.69 -0.29

Mexico IPC 52892.45 -0.52

Chile IPSA 6460.89 -0.81

Argentina MerVal 1546171.86 -2.272

Colombia COLCAP 1351.74 -0.2

Currencies Latest Daily % change

Brazil real 5.6402 0.28

Mexico peso 18.4321 -0.42

Chile peso 949.9 -0.32

Colombia peso 4037.4 0.23

Peru sol 3.7431 -0.42

Argentina peso 929.0000 -0.05

(interbank)

Argentina peso 1425 1.75

(parallel)