EMERGING MARKETS-Latam FX subdued as dollar firms, Brazil's real edges up

* Latam FX, stocks down * Inflation in Brazil falls in mid-September on lower fuel prices * Colombia government agrees to ease tax changes to oil, mining * JPM raises Mexico's economic growth forecast (Updates prices) By Bansari Mayur Kamdar and Amruta Khandekar Sept 27 (Reuters) - Latin American currencies were subdued on Tuesday as the dollar hovered near a recent peak, while the Brazilian real edged up after better-than-expected inflation data supported the country's decision to pause its aggressive rate hiking cycle. The real was up 0.3%, after government statistics agency IBGE said consumer prices extended their trend down in the month to mid-September as fuel costs continued to drop. Brazil's inflation in the 12 months to mid-September hit 7.96%, well below the 8.14% forecast by economists. However, the real came off its session high and broader Latam currencies fell 0.2% as the dollar index reversed early losses and stayed close to a 20-year high of 114.58 hit the day before. Oil exporter Mexico's peso climbed 0.1% as crude prices gained on supply curbs in the U.S. Gulf of Mexico ahead of Hurricane Ian. J.P. Morgan analysts raised their economic growth forecast for Mexico's third quarter gross domestic product after August trade data signaled a stronger than anticipated output from the country's manufacturing sector. Currencies in the commodity-heavy Latam region have fared relatively better than many emerging market peers in 2022, with the Brazilian real and Mexican peso gaining 3.8% and 0.7% respectively so far this year. "Mexico and Brazil are trading with remarkable resilience," said Themos Fiotakis, head of FX research at Barclays in London. Fiotakis added that these countries are probably receiving a disproportionate share position because of their commodity export mix and other pockets of emerging markets being under pressure, among other factors. The Chilean peso was up 0.7% but pared some session gains as copper prices dipped with a strong dollar after seeing a bounce earlier in the day. Colombia's peso fell 0.3% while the Peruvian sol and Argentina's peso were down nearly 0.1% and 0.2% respectively. The Colombian government agreed on Monday to modify a tax reform proposal under debate in congress and continue to allow oil and mining companies to deduct royalty payments from their taxes in the wake of a wave of industry criticism. Risk sentiment has taken a significant hit in recent days, with a big interest rate hike and hawkish signals from the Federal Reserve, as well as concerns around UK government's fiscal plan rattling investors. Latam stocks reversed early gains on Tuesday, in line with global peers, and looked set to extend losses from the previous session when they recorded their largest daily percentage drop since mid-June. In broader EM, the Hungarian forint gained 0.2% after the country raised its base rate by a larger-than-expected 125 basis points to 13%. Key Latin American stock indexes and currencies at 1924 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 891.14 0.29 MSCI LatAm 2040.81 -0.16 Brazil Bovespa 108758.41 -0.33 Mexico IPC 45148.85 0.76 Chile IPSA 5180.72 0.04 Argentina MerVal 135722.39 -1.756 Colombia COLCAP 1122.93 0.91 Currencies Latest Daily % change Brazil real 5.3753 0.3 Mexico peso 20.3801 0.2 Chile peso 986.5 0.65 Colombia peso 4548.13 -0.27 Peru sol 3.9362 -0.34 Argentina peso 146.5600 -0.19 (interbank) Argentina peso 286 0.00 (parallel) (Reporting by Bansari Mayur Kamdar and Amruta Khandekar in Bengaluru Editing by Nick Zieminski and Sandra Maler)