This article is part of an effort to make the concepts of our Latin American and Caribbean Macroeconomic Report, which at first sight may seem complex, more accessible to the general public. To explain what the drop in GDP suffered by Latin America and the Caribbean in 2020 as a result of the pandemic means in practical terms, Eric Parrado, Chief Economist and General … [Read more...] about The Impact of Low Economic Growth and Inflation on Households: A Conversation with Eric Parrado, IDB Chief Economist
#Inflation
The Delicate Balance of Protecting Income While Fighting Inflation
With food inflation for a median country in Latin America and the Caribbean running at 14% in 2022, its highest level in 20 years and even core inflation -- excluding energy and food -- running at 7%, central banks in the region have been compelled to keep interest rates aloft. This has contributed to an important social goal because the poor spend the largest share of their … [Read more...] about The Delicate Balance of Protecting Income While Fighting Inflation
The Universal Factors Behind Inflation in Latin America and the Caribbean
With inflation in Latin America and the Caribbean running at its hottest in two decades, the issue of where that inflation comes from and what the region's central banks might do differently has taken on great urgency. Our newly released study arrives at a hugely important conclusion: the overwhelming bulk of inflation in the region today comes not from factors that are … [Read more...] about The Universal Factors Behind Inflation in Latin America and the Caribbean
Lessons from the Lost Decade for Confronting Inflation Today
Inflation in Latin America is currently running at its highest level in 15 years. With uncertainty about how it will unfold, the expectations of people and firms are largely de-anchored, meaning distinct from the central banks’ target levels, and thus a potential source of even greater inflation. Meanwhile, as world interest rates rise, countries in the region are finding it … [Read more...] about Lessons from the Lost Decade for Confronting Inflation Today
Inflation and Its Impact on the Poor in the Era of COVID-19
Inflation has become a growing concern for central banks in Latin America and the Caribbean. The recovery in economic activity was stronger than expected in the first months of 2021, reflecting the stimulus that governments deployed to mitigate the effects of the pandemic and higher mobility and lower containment measures. However, inflation and inflation expectations in the … [Read more...] about Inflation and Its Impact on the Poor in the Era of COVID-19