Economics
Latin America’s Surging Prices Spell Hard Work for Central Banks
- CPI above target in Brazil, Colombia, Chile, Peru and Mexico
- Analysts fear shocks spreading into core inflation, services
A farmer checks on coffee plants destroyed by frost during extremely low temperatures near Caconde, Sao Paulo.
Photographer: Jonne Roriz/BloombergThis article is for subscribers only.
Painful price increases across Latin America in September mean lots more work for the region’s major inflation-targeting central banks.
Consumer prices soared well past policy maker’s tolerance levels in Brazil, Mexico, Chile, Colombia and Peru last month, largely on rising food and energy costs. The price shocks suggest inflation may be spreading to core items and services, paving the way for more interest rate hikes across the region.