Diverse Inflation Trends Across Latin America

In 2023, Latin American Venezuela and Argentina are among the countries with the highest inflation worldwide.

They join Lebanon in this ranking. The rest of Latin America, except Cuba, shows lower inflation rates.

This situation follows the monetary imbalances caused by the pandemic.

Colombia is the only other country in the region with double-digit inflation. Its rate reached 10.15% in November 2023 compared to the previous year.

The inflation rates in other Latin American countries from January to November 2023 are as follows:

1. Venezuela leads the world in inflation. It recorded a rate of 182.9% between January and November. Its annual rate is 282.7%, showing a consistent decline despite being the highest.

2. Argentina is second in terms of inflation. It accumulated 148.2% in eleven months. Over the last twelve months, Argentina’s Consumer Price Index (CPI) increased by 138.3%.

3. Colombia’s year-to-date inflation stands at 8.78%. The annual inflation rate is 10.15%.

4. Uruguay’s inflation in the eleven-month period is higher than its annual rate. The CPI rose 5.22% this year and 4.96% over the year.

5. Honduras added 4.65% inflation from January to November. Its annual inflation rate is 5.04%.

6. Chile experienced a 4.5% rise in CPI in the first eleven months. The year-on-year inflation rate is 4.8%.

7. Guatemala’s inflation reached 4.06% in the eleven months of 2023, with a 4.30% annual rate.

8. Brazil, the region’s largest economy, saw 4.04% inflation this year. Compared to November last year, the rate is 4.68%.

9. Nicaragua accumulated 3.98% inflation this year and 9.83% over twelve months.

10. Mexico, with the second-largest GDP in Latin America, had 3.93% inflation this year and a 4.32% annual rate.

11. Paraguay reported 3.4% inflation in the eleven months of 2023, with a 3.2% annual rate.

12. Peru’s national inflation for January-November is 3.10%, with a 5.65% year-on-year rate.

13. The Dominican Republic saw 3.01% inflation this year and 4% from November last year to September this year.

14. El Salvador’s CPI increase was 2% this year and 2.11% over twelve months.

15. Bolivia’s CPI rose 1.48% in the first eleven months of 2023 and 1.61% year-on-year.

16. Ecuador recorded 1.37% inflation this year and 1.53% annually.

17. Costa Rica continues to experience deflation, with rates of -1.81% this year and -1.64% annually.

As of this writing, Panama’s inflation data for November is not yet released. However, Panama is known for having one of the lowest inflation rates in the region.