Recent Updates
- US: Employment Situation (Feb), Intl Trade (Jan)
- US: Establishment Survey Detail (Feb)
- US: Household Survey Detail (Feb)
- Canada: International Trade (Jan), Ivey PMI (Feb)
- Serbia: PPI (Feb)
- more updates...
Economy in Brief
U.S. Consumer Credit Outstanding Declines in January
Consumers reduced credit balances further in January...
U.S. Trade Deficit Widens to $68.2 Billion in January
The U.S. trade deficit in goods and services widened to $68.2 billion in January...
German Order Growth Gets Back in Gear Despite the Headwinds
German order growth is back in gear with total orders rising by 1.4% m/m in January...
U.S. Factory Orders & Shipments Rise Again in January
Manufacturing activity is strengthening. Factory orders rose 2.6% (2.8% y/y) in January...
U.S. Initial Unemployment Insurance Claims Rise Just 9,000
Initial claims for unemployment insurance rose modestly by 9,000 to 745,000 in the week ended February 27...
Viewpoints
Commentaries are the opinions of the author and do not reflect the views of Haver Analytics.
by Louise Curley April 5, 2005
Many Latin America are experiencing relatively low rates of inflation as measured by the year to year percent change in the consumer price index. For example, the March inflation was 1.87% for Peru and 2.40% for Chile.(See the first chart.)
Even the 4-5% rates of inflation shown by Mexico, Colombia and Uruguay are not unusually high for emerging markets. Moreover, Colombia and Uruguay have shown good progress in reducing inflation over the past few years while Mexico has maintained a 4-5% range of inflation in the same time frame. (March data for Mexico are not yet available.)
Venezuela's inflation rose sharply as its oil bonanza and populist government led to big increases in consumer demand. It has since abated but is still among the highest in the area. Inflation in Argentina rose sharply, spiking at over 40% by late 2002 after it had abandoned its currency board. Inflation began to moderate subsequently and reached a low point of 2.26% in February, 2004. Since then, however, inflation has been rising sharply in Argentina. The second chart contrasts the recently declining trend of inflation in Venezuela with the rising trend in Argentina.
Latin American Countries Y/Y % Change in CPI |
Mar 05 | Feb 05 | Mar 04 | M/M Dif | Y/Y Dif | 2004 | 2003 | 2002 |
---|---|---|---|---|---|---|---|---|
Argentina | 9.15 | 8.13 | 2.28 | 1.02 | 6.87 | 4.42 | 13.44 | 25.84 |
Chile | 2.40 | 2.19 | -0.75 | 0.21 | 3.15 | 1.05 | 2.81 | 2.49 |
Colombia | 5.03 | 5.24 | 6.28 | -0.21 | -1.25 | 5.90 | 7.13 | 6.35 |
Peru | 1.87 | 1.68 | 3.43 | 0.19 | -1.56 | 3.66 | 2.26 | 0.19 |
Uruguay | 5.48 | 5.66 | 8.38 | -0.18 | -2.90 | 9.16 | 19.38 | 13.97 |
Venezuela | 15.80 | 16.81 | 21.88 | -1.06 | -6.08 | 21.75 | 31.09 | 22.43 |
Mexico | n.a. | 4.27 | 4.23 | n.a | n.a. | 4.69 | 4.55 | 5.03 |