In 2024, Latin American countries are expected to see varying trends in inflation.
After experiencing inflationary shocks between 2021 and 2022, many countries in the region began moving towards more moderate inflation rates in 2023.
Argentina and Venezuela remained exceptions, with significantly higher rates.
Central banks across Latin America conducted surveys with banks and consulting firms to gauge the economic outlook for 2024.
However, these surveys indicate a general trend of decreasing regional inflation rates.
Brazil’s Central Bank survey predicts a decline to 3.86% by the end of 2024, with a further drop to 3.5% by December 2025.
This follows a peak of 12.13% in April 2022 and a closing rate of 4.62% in 2023.
In Mexico, projections from the Bank of Mexico (Banxico) suggest a 4% inflation rate by December 2024, falling to 3.72% by the end of 2025.
This forecast follows a high of 8.7% in mid-2022 and a year-end rate of 4.66% in 2023.
Economic Outlook
Colombia struggled with double-digit inflation throughout 2023, closing the year at 9.28%.
For 2024, the forecast is more optimistic, with expectations of a 5.39% inflation rate by December.
In addition, Chile’s Central Bank also predicts a steady inflation rate of 3% for December 2024 and 2025.
The country ended 2023 with a 3.9% rate after experiencing a high of 14.1% in August 2022.
Peru’s analysts anticipate a 2.7% inflation rate by December 2024. Financial institutions and non-financial companies project slightly higher rates of 2.95% and 3%, respectively.
Peru closed in 2023 with a 3.24% rate after a peak of 8.81% in June 2022.
Argentina stands out with an extraordinarily high inflation rate. In December 2023, the rate reached 211.4%, the highest in the world.
In short, Projections for December 2024 suggest a similar trend, with an expected rate of 213%, according to the Central Bank of the Republic of Argentina.