Labour market data released across the region this week flew under the radar, but the figures provide worrying signs that rapid wage growth in Brazil will continue to keep core inflation high. We take a bit more assurance from the data for Colombia and Chile that inflationary pressures may start to ease there. Elsewhere, the announcement this week that Tesla will build a factory in Mexico has attracted a lot of fanfare but we are sceptical that nearshoring will significantly boost Mexico’s growth prospects.
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