UPDATE 1-Brazil Jan retail sales rise more than expected

(Recasts, adds retail segments, nominal sales)

SAO PAULO, March 15 (Reuters) - Retail sales volumes in Brazil rose more than expected in January, fueled by a surge in sales of furniture and appliances that benefited from an increase in consumer credit and higher wages, government data showed on Thursday.

Retail sales BRRSL=ECI rose 1.8 percent in January from December, higher than the median forecast in a Reuters survey of 8 analysts was for retail sales volumes to rise 0.9 percent. The estimates ranged from a decline of 0.1 percent to a gain of 2.5 percent.

All four sectors surveyed for the month-on-month data showed an increase, led by a 17.5 percent jump in sales of furniture and appliances and 3.1 percent rise in the sector encompassing textiles, clothing and shoes.

Furniture and appliance sales benefited "from the favorable credit conditions, real wages, employment and prices, after promotions to reduce inventory," the government's statistics agency IBGE said.

January retail sales volumes rose 8.5 percent when compared with a year earlier, the IBGE said. That was higher than the 7.8 percent median forecast of 17 analysts in the survey. The estimates ranged from 4.2 percent to 8.8 percent.

Nominal sales, as measured by total sales receipts and unadjusted for inflation, rose 2 percent in January versus December and rose 8.3 percent versus January of last year.

Retail sales volumes -- instead of total sales receipts via cash or credit card -- exclude inflation that could distort sales comparisons.

For a breakdown of retail sales data from the IBGE's Web site please go to: here