Argentina is running a 25% inflation rate. Not so Chile. Here is Bloomberg.com report
Unemployment fell to 6.2 percent in the three months through November, surprising economists who expected the rate to remain unchanged at 6.6 percent, while wages grew an annual 6.5 percent that month, more than four times faster than inflation. Retail sales surged 10.7 percent over the same period, out-pacing the manufacturing index that grew 0.8 percent.
“The economy is running at rates that are higher than its potential,” Alfredo Coutino, Latin America director at Moody’s Analytics, said by phone Jan. 11 from West Chester,Pennsylvania. “As pressures on domestic demand accumulate, inflation will start a trend of acceleration probably around May or June of this year and that is going to force the central bank to start hiking the interest rate.”
For now, inflation continues to slow, dropping from 4.4 percent at the end of 2011 to 1.5 percent last month. Colombia at 2.44 percent had the second-lowest inflation rate among major Latin American countries last year.