Data released this morning show that rising global commodity prices continue to be the main driver of inflation in both Brazil and Chile. But while these effects may fade over the course of 2011, booming domestic demand means that core price pressures are likely to build at the same time. This may prompt some interest rate hikes, but we still expect currency concerns to ensure that they are gradual.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services