At the outset of 2024, Latin America’s key economies faced unexpected inflation trends, despite efforts to reach pre-pandemic stability.
Surprisingly, Brazil and Chile encountered higher inflation than anticipated, while Argentina experienced a smaller price increase than expected.
Nonetheless, Argentina continued to record the highest inflation rate globally, far exceeding that of Venezuela.
Colombia achieved a significant milestone by reducing its annual inflation rate to below 10% in December 2023, maintaining this downward trend into January.
This achievement marked a notable shift from its long-standing struggle with high inflation rates.
January’s notable inflation figures included Brazil’s monthly rate of 0.42%, exceeding forecasts and culminating in a 4.51% annual rate.
Mexico’s prices rose by 0.89%, marginally above expectations, leading to a 4.88% annual inflation rate.
Chile experienced a larger discrepancy, with actual inflation at 0.7% against a 0.4% forecast, adjusting its annual rate to 3.8%.
While Colombia’s annual inflation slightly surpassed projections at 8.35%, this was viewed positively against the backdrop of historically higher rates.
Argentina closed January with a monthly inflation rate of 20.6%, below the forecasted 21.9%.
Yet its annual rate soared to 254.2%, placing it at the top of global inflation rankings, well ahead of Venezuela’s 107.4%.
Background
The inflation rates across Latin America in January, from highest to lowest, showcased a wide disparity:
Argentina: 254.2%
Venezuela: 107.4%
Colombia: 8.35%
Nicaragua: 5.6%
Uruguay: 5.09%
Honduras: 5%
Mexico: 4.88%
Brazil: 4.51%
Guatemala: 4.18%
Chile: 3.8%
Paraguay: 3.4%
Dominican Republic: 3.32%
Peru: 3.02%
Panama: 1.92% (as of December)
Bolivia: 1.86%
Ecuador: 1.35%
El Salvador: 1.21%
Costa Rica: -1.87%
This early 2024 inflation landscape in Latin America underscores the persistent economic challenges within the region.
Despite some countries making strides toward stabilization, the varied success in managing inflation highlights the ongoing global and domestic pressures these economies face.
The trends suggest a complex economic environment, with each country navigating its unique set of challenges to achieve stability and growth