Few signs of fuel subsidies, the right on the rise

Governments in Latin America, unlike those in other parts of the emerging world, have generally refrained from large fiscal measures to shield households and businesses from higher energy prices. While that’s good news for the public finances, it does mean that inflation will rise sharply. This week's central bank meetings and communications suggest that, so far, policymakers don't appear to be too concerned by that. The outlier is Colombia where the inflation backdrop was unfavourable even before the war in Iran and we expect BanRep to continue its tightening cycle next week.