In the first quarter of 2024, Latin America displayed a remarkably wide spectrum of varying inflation rates.
Argentina recorded the world’s highest consumer price index, while Costa Rica experienced deflation, illustrating the region’s varied economic conditions.
During this period, Brazil and Mexico, two of the largest economies in Latin America, aimed to adjust their monetary policies to pre-pandemic inflation levels.
Despite significant and productive efforts, Argentina still has the highest inflation rate in the world, surpassing even Venezuela.
Venezuela previously held this unwanted title but has since managed to reduce its annual inflation rate to triple digits.
The first quarter saw Argentina leading with a dramatic inflation rate of 51.6% between January and March, and an alarming year-on-year rate of 287.9%.
Meanwhile, Venezuela posted a first-quarter inflation rate of 4.1%. However, private estimates indicated a rate as high as 7.8%.
Officially, Venezuela’s year-on-year inflation stood at 67.75%, with the Venezuelan Finance Observatory reporting a rate of 89%.
Colombia also faced challenges in curbing its post-pandemic inflation, registering a 2.73% increase for the quarter and a yearly rate of 7.36%.
Uruguay and Paraguay reported milder inflation rates of 2.2% and 2% for the quarter, with annual rates at 3.8% and 3.6%, respectively.
Early 2024 Inflation Dynamics Across Latin America
Chile’s inflation rose modestly by 1.6% over the same period, with a year-on-year rate of 3.7%.
Peru saw a slight increase of 1.59% for the quarter, with an annual rate of 3.05%.
Brazil’s quarterly inflation was somewhat lower at 1.42%, with a yearly increase of 3.93%.
Mexico’s inflation for the first quarter was 1.28%, with a year-on-year rate of 4.42%.
Costa Rica was the only regional country to report deflation, with prices falling by 0.34% over the quarter and annually by 1.19%.
This economic situation highlights the varied challenges and strategies addressing inflation in Latin America in early 2024.