As December unfolds, the economic landscape of Latin America takes center stage. From Brazil’s GDP to inflation figures across Colombia, Chile and Peru, the region prepares for a week of key economic indicators.
These reports will shed light on the health of various economies and their trajectories as 2024 draws to a close.
Brazil
Brazil’s economic landscape shows mixed signals as 2024 draws to a close. The country’s inflation outlook for 2024 has stabilized at 4.63%, just above the government’s 3% tolerance target.
However, analysts have raised their inflation forecast for 2025 to 4.34%, marking the sixth consecutive increase. The GDP growth forecast for 2024 has been revised upwards to 3.17%, indicating a positive economic trajectory.
In October, Brazil’s annual inflation rate climbed to 4.76%, the highest in a year. This increase was mainly driven by the increase in the prices of food and beverages (6.65%) and the costs of housing and services (6.12%). The central bank has responded to these inflationary pressures with two interest rate hikes this year.
Colombia
Colombia’s inflation rate continues its downward trend, easing to 5.41% in October 2024, the lowest reading since November 20212. This marks the fourth consecutive month of slowing inflation, falling below market expectations of 5.71%. On a monthly basis, consumer prices fell by 0.13%, the first decline since November 20212.
The country’s inflation rate is expected to reach 5.50% at the end of the current quarter, with projections of 4.00% in 2025 and 3.50% in 20262. These figures suggest a gradual return to the central bank’s target range.
Chile
Chile’s inflation rate unexpectedly accelerated to 4.7% in October 2024, from 4.1% in September. This increase was influenced by the increase in the prices of housing and communal services (3.1%) and food and non-alcoholic beverages (2.2%). On a monthly basis, consumer prices rose 1%, marking the strongest increase since March 20235.
The country’s core inflation rate also rose, with core consumer prices rising 0.2% in October. These figures show continued inflationary pressures in the Chilean economy.
PERU
Peru’s core inflation rate stood at 2.74% in September 2024, showing a slight decrease from 2.96% the previous month. The country’s inflation rate is forecast to reach 3.50% at the end of the current quarter, with long-term expectations of around 3.00% in 2025.
The trend suggests a relatively stable inflationary environment compared to some of its regional counterparts.
