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Latin America Inflation Shocks Raise Prospect of More Rate Hikes

  • Consumer prices jump more than forecast across the region
  • Brazil and Chile had signaled they were near the end of hikes
Updated on

Latin America’s central bankers are facing renewed pressure to extend aggressive interest-rate hikes after consumer prices stormed past estimates across the region, driven by soaring costs of raw materials.

March’s inflation blew past even the most pessimistic forecasts in Brazil and Chile, according to official numbers released on Friday. That follows worse-than-expected price data in Colombia, Peru and Mexico. The region is being hit by rising fuel and food costs driven by Russia’s invasion of Ukraine.