Why is Inflation Increasing in LatAm?

Despite a global downturn in commodity prices, inflation in most Latin American countries is going up. Mexico and Costa Rica were the only regional outliers in 2015, but still an uptick is expected for both in 2016. Higher consumer prices have already hastened monetary tightening in some countries; a no-no in a recessionary economic environment. Why is inflation increasing? How are central banks responding? We analyzed consumer price dynamics in selected LatAm countries. Continue reading Why is Inflation Increasing in LatAm?

The Oil Rout and its Impact on Latin American Countries

Background: Oil prices have plunged in the last 18 months. Yes, they rebounded sharply on January 21 and 22, but the uptick is far from cleaning the mess. After WTI crude prices fell to a 12-year low of $26.55 on January 20, they surged and closed the trading week at $32.25 per barrel. That is a 21.5% upturn in about 48 hours. That is how volatile prices have been. But the comeback is recent. With the $100-a-Barrel Era gone for a while, how are Latin American countries coping with the new normal? Continue reading The Oil Rout and its Impact on Latin American Countries