While most of South America is undergoing a deceleration of consumer prices Argentina and Venezuela are the only countries to experience a significant increase in inflation, making it one of the main concerns or public opinion.
Brazil’s currency fell Monday over concern Europe’s debt crisis may slow the global economic recovery. The Real slid 0.9% to 1.8704 per U.S. dollar from 1.8534 on May 21. The currency has declined 6.7% this year after rising 33% in 2009.
World stock markets plunge Friday and the Euro hit an 18-month low against the dollar, on growing fears that the austerity packages unveiled across Europe could tip the continent back into recession and stifle global economic recovery.
Brazilian President Lula da Silva on Wednesday said the country's interest rates could go up again this year “if necessary,” even in the run-up to the presidential election. Brazil is holding elections next October and will be voting for the successor of Lula da Silva who is barred from running a third consecutive mandate.
April inflation in China has accelerated as bank lending exceeded estimates and property prices jumped by a record, increasing pressure on the government to raise interest rates and let the currency appreciate.
The Bank of England held interest rates at record lows as policy-makers weighed up the impact of a Eurozone bailout and a hung parliament. The Bank's Monetary Policy Committee voted to hold rates at 0.5% and left its £200 billion program to boost the money supply unchanged.
Brazil’s Bovespa stock index fell for a second day on Friday closing with the biggest weekly decline since February 2009, on concern that Europe’s debt crisis is worsening and rescue packages could have to be extended to Portugal and Spain.
Brazil on Wednesday announced long-awaited measures to boost exports at a time when the trade surplus in Latin America's largest economy is shrinking rapidly on a yearly basis. The government will create a lender, named EXIM Brasil, to help finance exports.
Uruguay’s April consumer inflation reached its highest level in thirteen months and for the second month running was above the 7% annual target, according to the latest report from the Statistics Institute.
Brazil’s Real fell on Friday for the first time in three days as the government stepped up efforts to limit gains in the currency. The real lost 0.6% to 1.7384 per dollar at the end of the week after increasing 2.4% in April and 1.1% for the week.