Economics

Inflation in Full Retreat Means Latin America Can Boost Stimulus

  • Brazil, Chile, Colombia recorded deflation last month
  • Price pressure still weak despite wave of interest rate cuts

People wearing protective masks walk through downtown Sao Paulo, Brazil, on June 10.

Photographer: Patricia Monteiro/Bloomberg
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Inflation is in retreat across Latin America, creating space for policy makers to provide even more stimulus for their crashing economies.

In a region with a history of out-of-control inflation, consumer prices fell last month in several major economies as the coronavirus pandemic crushed demand.