This week, economists anticipate that updated consumer price inflation data for May 2024 from Chile and Mexico will exceed their respective targets, garnering significant attention from regional economic observers.
Furthermore, reports indicate that inflation in Brazil rose in May, adding to the anticipation for the upcoming policy meeting on June 19 and putting pressure on policymakers to adjust their strategies.
In Argentina, despite challenging economic conditions and currency fluctuations, there are signs of a sustained slowdown in inflation.
The central bank of Argentina often implements unconventional measures in response to economic indicators, while the national Senate plans to address crucial fiscal reforms that could shape the country’s economic path.
In Colombia, forecasts suggest declines in general and core inflation rates, potentially prompting authorities to consider further rate cuts and policy adjustments.
Peru’s central bank is expected to lower interest rates from 5.75% to 5.5% due to ongoing economic challenges and a slight decrease in inflation, with readiness to adapt strategies based on new economic data.
Weekly Economic Pulse: Inflation Trends and Policy Adjustments Across South America
Key upcoming dates include:
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- Argentina may announce slowed May inflation on June 13, influenced by reduced consumer spending and controlled price adjustments.
- Brazil is scheduled to release May inflation data on June 11, expected to be in line with previous mid-month figures.
- Colombia will update its May inflation rates on June 11 and release critical retail and industrial production data on June 14, potentially reflecting economic improvements.
- Mexico will report April industrial output on June 11, with an anticipated annual increase.
- Peru’s Central Bank will hold a key policy meeting on June 13 to possibly confirm further interest rate cuts.
These events mark a crucial period for South America as it navigates inflation trends and adjusts monetary policies.
