Inflation in China accelerated in March to the fastest rate since 2008, despite government efforts to cool prices. Consumer prices rose by 5.4% in March compared with a year earlier, the National Bureau of Statistics said. In February, the annual figure was 4.9%.
President Jose Mujica promised there will be no ‘uncontrolled inflation in Uruguay’ and although admitting it’s not a simple problem, with no magic solution, there are “sufficient tools’ to address the issue including putting “government spending on a diet”.
Venezuela and Argentina recorded the highest rates of inflation in South America during the first quarter of 2011 according to the latest data available.
If recent evidence is anything to go by, Brazil’s latest effort to stem the rise in the Real is unlikely to have a lasting impact on the markets, according to Capital Economics.
Venezuela's nationwide consumer price index (NCPI), prepared by the Central Bank of Venezuela (BCV) and the National Statistics Institute (INE), showed a 1.4% increase in March 2011 compared to February 2011.
Uruguay consumer prices soared 1.42% in March, reaching 8.17% in the last twelve months and 3.6% in the first quarter, which is dangerously close to the twelve month government target of 3% to 7%, which theoretically should go down to 4% to 6% next June.
Uruguay's central bank this week surprised local economists and raised its benchmark interest rate 100 base points, one percentage point to 7.5%, in an attempt to help combat accelerating inflation which is beyond the government's target range.
Billionaire Warren Buffet who urged United States in 2009 to guard against inflation, said investors should avoid long-term fixed-income bets in US dollars because the currency’s purchasing power will decline.
Brazilian Central bank President Alexandre Tombini admitted inflation forecasts may “worsen”. Consumer prices in the 12 months through mid-March rose 6.13%, the biggest jump in more than two years.
Goldman Sachs raised its forecast for Argentina’s economic growth in 2011 after the economy expanded last year at the fastest pace since 2005. Alberto Ramos Goldman Sachs economist raised the GDP expansion estimate to 6.8% from a previous 5.6%, according to an e-mail statement.