Brazil, Mexico lead declines among La

* Brazilian inflation slips slightly in August * Brazil's Azul jumps after issuing FY net rev forecast * Mexican peso passes 20 per dollar level * Latam stocks down 1.2%, FX slips 1% (Updated at 1950 GMT) By Johann M Cherian and Lisa Pauline Mattackal Sept 10 (Reuters) - Most currencies and equity markets in resources-rich Latin America lost ground on Tuesday as commodity prices declined, with Brazil's real leading forex declines as investors assessed inflation data. MSCI's index tracking regional currencies lost 1% against the dollar, on track for its worst day since August 29. An index tracking local equity indexes dropped 1.2% to an over one-month low. Oil prices slumped, with Brent crude falling to their lowest since December 2021 after the Organization of Petroleum Exporting Countries cut its forecast for global oil demand growth in 2024 and the following year. The dollar strengthened 1.2% to its highest in over one week against Brazil's real, as prices of iron ore and oil took a hit. Data showed consumer prices in the region's biggest economy fell marginally in August, coming in slightly below market expectations, but traders stuck to bets on a 25 basis points rate hike later in the month. "We expect the Copom to validate a moderate relatively short rate hiking cycle, starting with a 25 bps hike at the September 18 meeting," said Goldman Sachs' Alberto Ramos, noting he now expects the next round of Brazilian rate cuts to begin in June 2025 meeting rather than July 2025 as previously forecast. Elsewhere, Mexico's peso weakened 1%, hovering near two-year lows and weakening past the 20 per dollar level. Colombia's peso depreciated 0.9% to hit its lowest since October 2023. Copper exporter Chile's currency slipped 0.5% as copper prices retreated on persistent worries about the economic health of top importer China. Markets were on edge ahead of a key U.S. inflation print that will help investors assess whether the U.S. Federal Reserve could cut rates by 25 basis points or a larger 50 bps. U.S. rate cuts would ease some pressure on emerging market central banks, which have struggled to balance economic growth worries with preventing runaway inflation and shoring up declining currencies. Currencies of major economies in Latin America are on track for declines year-to-date. "The start of the Fed easing cycle is likely to allow for a broadening on the emerging market cutting cycle," Ramos said. Investors also awaited the first debate between U.S. presidential candidates Donald Trump and Kamala Harris for more clarity on what either's presidency could mean for global markets. Brazil's Bovespa shed 0.2%, with oil giant Petrobras down 1.5%. On the other hand, Azul jumped 4.7% after the airline said it expects its annual net revenue to increase 7% from last year. Argentina's MerVal index dropped 1.3% ahead of the release of its August inflation data. HIGHLIGHTS ** Petroperu's board offers to resign as financial crisis lingers ** Colombian government proposes new fiscal reform to raise extra $2.84 bln ** Argentina sees energy investment reaching $15 bln next year, fueled by deregulation ** Chilean central bank is expected to lower its benchmark interest rate by 25 basis points Key Latin American stock indexes and currencies: MSCI Emerging Markets 1062.74 -0.07 MSCI LatAm 2171.13 -1.20 Brazil Bovespa 134457.94 -0.21 Mexico IPC 51027 -0.21 Chile IPSA 6214.95 -0.28 Argentina Merval 1715641.6 -1.318 2 Colombia COLCAP 1313.66 -0.61 Brazil real 5.6542 -1.25 Mexico peso 20.0794 -1 Chile peso 948.84 -0.48 Colombia peso 4280.34 -0.92 Peru sol 3.7902 0.23 Argentina peso (interbank) 957 0.1044932 08 Argentina peso (parallel) 1260 0.7936507 94 (Reporting by Johann M Cherian and Lisa Mattackal in Bengaluru; Editing by Alistair Bell)