The early trade data for March suggests that Brazil's economy is, on net, benefitting from the energy price shock and that Chile's rising energy import bill is being offset by strong exports, shielding the peso. Inflation jumped across the region in March and, concerningly, the rise in consumer prices wasn't just concentrated in energy itself. That's likely to prompt further central bank caution. Finally, while Peru's presidential election on Sunday is almost certain to go to a run-off in June, legislative elections are likely to result in a highly fractured congress - which will be a key constraint any reforms the next president tries to enact.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services