(Recasts with further data, context)
SAO PAULO, Feb 12 (Reuters) - Brazil’s services activity fell more than expected in December compared with the previous month, data from the statistics agency IBGE showed on Thursday, as high interest rates continued to weigh on activity.
<ul>
<li>The main driver of Latin America’s largest economy fell 0.4% in December from November, IBGE said.</li>
<li>Economists in a Reuters poll had expected a 0.1% increase.</li>
<li>Three of the five service groups surveyed posted declines, with transport showing the steepest drop.</li>
<li>Persistent price pressures in the sector remain a concern for Brazil’s central bank, which has kept Brazil’s benchmark interest rate at 15%, a near-two-decade high, to curb inflation.</li>
<li>Year-on-year, services output rose 3.4%, roughly in line with expectations of a 3.5% increase.</li>
</ul>

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- Brazil's service sector activity fell by 0.4% in December, contrary to economists' expectations of a 0.1% growth, as high interest rates continued to exert pressure.  
- Three of the five service groups experienced declines, with the transportation sector seeing the most significant drop.  
- Year-on-year, service sector output grew by 3.4%, aligning closely with the anticipated 3.5% increase, while ongoing price pressures remain a concern for Brazil's central bank, which kept the benchmark interest rate at 15%.

Brazil's services sector activity misses expectations in December