In principle, the sharp reduction in the rate of increase in prices in the country governed by Nicolás Maduro is due to the fact that the central bank of that country authorized the bi-monetary regime, something that was taking place in fact. As the data indicates, Argentina is at the head of the lot of countries with the highest increase in the cost of living with 29.3%, followed by Venezuela, with 23.9% and Chile in third place with 6.1%. Then appear Colombia, 5.7%; Paraguay, 5.4%; Brazil, 5%; Uruguay, 4.9%; Ecuador, 2.2, Peru, 2% and closes the batch Bolivia, with 0.8% accumulated so far.
The information shows how the increase in the price of commodities as a result of Russia’s invasion of Ukraine has been impacting the region, although in Argentina the phenomenon is aggravated by its own imbalances.
A report from the Latin American Federation of Banks (FELABAN) cites a report from the International Monetary Fund (IMF) which states that “an increase of 10% in oil prices leads to an increase in inflation of 0.2% in Latin America , a 10% increase in food prices in the world brings as a consequence an increase of 0.9% in regional inflation”.
FELABAN indicates that “the Inter-American Development Bank (IDB), in its annual report on macroeconomics, mentions that inflation has three components: food inflation, the price of fertilizers (which represents 28% of imports from Latin America to Russia main supplier), and energy prices”.
“All the countries of the region have seen an increase in inflation in the last year, as well as the indicators of basic inflation and inflation of the food item,” the report indicates.
The entity points out that “inflation has had different nuances in recent months” and clarifies that “in almost all countries, the price of food has been decisive in raising the general indices”.
Source: Ambito
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