Our Latin America Economics Chart Pack has been updated with the latest data and our analysis of recent developments.
Many major Latin American economies have received a terms-of-trade boost from the surge in energy prices. But with most of the windfall likely to be saved, the impact on growth will be muted. High fuel prices pushed up inflation across the region last month and, in aggregate, we think headline inflation will be c.0.5%-pts higher this year than our pre-war forecast.
In Colombia, the central bank will hike interest rates further. Central banks elsewhere in the Andes are likely to leave policy settings unchanged in the foreseeable future. And in Brazil, the very restrictive monetary policy stance means there’s still scope for interest rates to come down significantly.
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