Latin American countries with lowest inflation: Brazil ranks in top 5

Following a period of economic turbulence in 2022, almost all Latin American countries have experienced a steady decline in inflation.

As of May, only three countries reported a higher Consumer Price Index (CPI) than the previous month.

This medium-length article provides a snapshot of the inflation status across the region, with Brazil, Latin America’s largest economy, featuring prominently in the top five countries with the lowest inflation.

Panama, maintaining its position from previous months, is leading as the Latin American country with the lowest inflation, closely followed by Costa Rica.

Brazil has successfully curtailed its inflation, which stood at an annual CPI of 3.94% in May, marking a significant reduction from 2022’s alarming double-digit inflation of 12.13%.

Today, Brazil ranks as the fifth Latin American country with the least inflation.

Mexico, another heavyweight in the region, has also been making progress in combatting inflation, albeit more slowly.

Its inflation rate was recorded at 5.84% in May, down from a peak of 8.7% in September and October 2022.

Panama’s annual inflation rate stood at just 0.4%, and Costa Rica ended May with an annual rate of 0.88%.

Ecuador reported a monthly inflation of 0.09%, bringing the annual variation to 1.97%.

Other countries like El Salvador, the Dominican Republic, and Paraguay also experienced an annual inflation rate below 6%.

Despite the overall progress, some countries are struggling to tame inflation. Chile, for instance, has been striving to reduce its inflation rate, which stood at 8.99% in May.

Colombia also reported a high annual inflation rate of 12.36%, though it represented a slight improvement from the previous month.

The situation is even more critical in Argentina and Venezuela.

Argentina ranks third with the highest inflation globally, recording a staggering 114.2% annually in May.

Venezuela, while yet to publish its May CPI, is known to have the highest inflation rate globally, with a recent report indicating an annual price increase of 458%.

It’s crucial to note that Argentina, Bolivia, and Venezuela were the only countries in the region where the annual inflation data for May was higher than that of April, indicating a worsening economic situation.

With information from Bloomberg