Inflation has fallen across the region at the start of this year, and is likely to stay relatively soft in the coming months. One common driver of weaker inflation has been lower fuel inflation. But core inflation has also edged down in Mexico, Chile and Peru. In response, having previously hinted at interest rate hikes, most central banks have become more dovish and look set to postpone tightening. And in Mexico, with inflation falling particularly sharply, we’re increasingly confident in our long-held view for rate cuts to begin in Q3.
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 gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services