Latin America Rate Hikes Are Coming on Relentless Core Inflation

Latin America’s central banks are under pressure to raise their interest rates after reopening economies fueled core inflation and kept headline price rises way above target in June.

Annual inflation is above target in Brazil, Mexico and Chile, with the Andean nation likely to consider raising rates next week, even after prices rose less than expected by analysts last month. In the case of the Latin America’s two largest economies, cost of living increases are even above the ceiling of policy makers’ tolerance ranges.