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* Brazil inflation +0.13% in month to mid-July vs est +0.17% * Argentina's economy chief meets top finance officials * Mexican economy to grow in Q2, but at slower pace - poll (Updates prices) By Anisha Sircar and Devik Jain July 26 (Reuters) - Latin American currencies were largely muted on Tuesday as an expected sharp U.S. interest rate hike kept the dollar stronger and risk appetite on edge, while Hungary's forint was a touch stronger following a rate increase. Hungary's forint trimmed some losses from early on to trade at 400.34 per euro after the central bank raised its base rate by a hefty 100 basis points to 10.75%, taking borrowing costs into double-digit territory for the first time since late 2008 amid surging inflation. Soaring gas prices and a risk-off pressured broader central European currencies. "Further rate hikes are likely to be smaller going forward provided the forint doesn't suffer fresh and disorderly falls, but interest rates will likely rise to 13% later this year," said Liam Peach, senior emerging markets economist at Capital Economics. "With inflation hitting 11.7% y/y in June and likely to rise further in the coming months, Hungary's central bank remains under pressure to continue with its tightening cycle." CEE currencies are also likely to continue to remain under duress amid fears of disruptions to European energy supply, rising global growth fears and mounting concerns over the impact of the U.S. Federal Reserve's policy-tightening path. The dollar rose against a basket of major currencies after three straight sessions of declines ahead of a widely expected 75 bps rate rise by the Fed on Wednesday. Mexico's peso and Brazil's real were flat in volatile trading. Brazilian consumer prices increased slightly less than expected in the month to mid-July, the country's statistics agency said, posting the lowest monthly increase in two years following a wave of government anti-inflation measures. Economists see the data paving the way for a downward inflation trend in Latam's largest economy. Mexico's economy, meanwhile, likely expanded for a third consecutive quarter between April and June, although at a lower rate due to the economic fallout of the Ukraine war and COVID-19 lockdowns in China, a Reuters poll showed. Chile's peso surged 1.4%, buoyed by recent intervention by the central bank to prop up the struggling currency, and as prices of copper, its top expert, rose. Argentina's tightly-controlled peso slipped 0.2%. The crisis-prone country's new economy minister held a series of high-level finance meetings in Washington on Monday, with international lenders and U.S. officials, at a time of escalating financial pressure. Generating confidence will be a key challenge for Colombia's next president, Gustavo Petro, to ensure continued investment and maintain economic growth at levels to avoid fiscal complications, an executive for ratings agency Moody's said on Tuesday. Elsewhere, the Russian rouble fell sharply to its lowest level against the dollar in two weeks as the market remained alert to any news on possible currency interventions or tweaks to Russia's fiscal rule. Key Latin American stock indexes and currencies at 1907 GMT Stock indexes Latest Daily % change MSCI Emerging Markets 988.77 0.17 MSCI LatAm 2013.68 0 Brazil Bovespa 99431.83 -0.84 Mexico IPC 46669.87 -1.13 Chile IPSA 5193.90 -0.81 Argentina MerVal 120351.72 0.706 Colombia COLCAP 1288.22 -0.13 Currencies Latest Daily % change Brazil real 5.3545 0.32 Mexico peso 20.4634 -0.02 Chile peso 923.9 1.41 Colombia peso 4432.25 0.54 Peru sol 3.9027 0.00 Argentina peso (interbank) 130.6700 -0.21 Argentina peso (parallel) 318 1.26 (Reporting by Anisha Sircar and Devik Jain in Bengaluru; Editing by Sandra Maler and Marguerita Choy)