The year 2024 closed with a complicated economic outlook for Latin America, where inflation continued to be a central issue in the economic agendas of several countries. Although some showed relative stability, others faced alarming figures that directly impacted the cost of living and the quality of life of their inhabitants. The following is an analysis of the inflation indexes in the region.
- Argentina: 117.8% year-on-year
- Venezuela: 85% year-on-year
- Cuba: Aproximarelt 27% (last official data in november)
- Bolivia: 9.97% year-on-year
- Uruguay: 5.49% year-on-year
- Colombia: 5.2% year-on-year
- Brasil: 4.83% year-on-year
- Chile: 4.5% year-on-year
- Mexico: 4.21% year-on-yeat
The Most Alarming Cases
Argentina consolidated its position as the country with the highest inflation in the world in 2024, reaching 117.8% year-on-year. This scenario was driven by a combination of ineffective economic policies, a deep financial crisis and an accelerated depreciation of its currency. The impact on the purchasing power of Argentines was severe, making access to basic goods and services difficult.
In Venezuela, although inflation remains high, the 85% year-on-year figure represents a slowdown compared to the extreme levels of previous years. This slight respite, however, was not enough to alleviate the economic difficulties faced by its population, marked by a prolonged crisis.
Cuba also reported a significant figure of approximately 27% inflation. Although the official figure corresponds to November, it reflects the economic tensions affecting the country, exacerbated by external restrictions and internal supply problems.
Bolivia: A Surprise in the Ranking
Historically known for maintaining low inflation rates, Bolivia surprised with a year-on-year increase of 9.97%. This increase places it as the country with the highest inflation in the region, excluding Argentina and Venezuela. Domestic factors, such as the decrease in international reserves and political tensions, contributed to this change.
Relative Stability in the Rest of the Region
Some countries managed to keep their inflation rates below 6%, demonstrating greater economic stability:
Uruguay (5.49%) and Colombia (5.2%) reflected effective control over inflationary pressures, thanks to sound monetary policies and fiscal adjustment strategies.
Brazil (4.83%) and Chile (4.5%) continued to consolidate their economies after facing previous inflationary challenges.
Mexico, with a rate of 4.21%, closed the year as one of the most stable countries in terms of inflation, favored by a prudent monetary policy and the dynamism of its domestic economy.
Regional Impact and Outlook
The 2024 inflation outlook for Latin America highlights the profound economic disparities between countries in the region. While some face devastating hyperinflations, others have made significant progress towards stability.
However, high inflation in key countries such as Argentina and Venezuela remains a challenge that affects not only their domestic economies, but also the overall perception of stability in the region. Going forward, it will be critical to strengthen economic policies, attract investment and promote regional integration to effectively address inflationary tensions.
In conclusion, 2024 provided important lessons for Latin America: controlling inflation is not only an economic issue, but an essential step to ensure the well-being of its citizens.
