Economics
Inflation Tests Brazil’s Low Rates, Gives Mexico Room to Cut
- Food and transport costs pushed Brazil’s prices above target
- Mexican inflation slowed dramatically during shopping holiday
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Consumer prices in Latin America’s two largest economies diverged in early November, complicating Brazil’s plans to hold its benchmark interest rate at a record low while suddenly giving Mexico space to cut.
Brazil’s prices climbed 4.22% from last year, surpassing the 2020 target of 4% for the first time since mid-February, according to data published Tuesday. Meanwhile annual inflation in Mexico slowed to 3.43%, less than expected by all analysts in a Bloomberg survey, and below the country’s target ceiling.