Inflation fears haunt Brazil

Two events have attracted particular attention in Latin America recently: the Venezuelan political crisis and the Brazilian central bank’s battle against inflation.

Fernando Luque 19 December, 2002 | 7:30PM
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The region’s performance in November was disappointing with the MSCI Latin America index rising by only 3.2% in dollar terms. This compared with a gain of 5.3% for the MSCI World index and a 6.8% increase for the MSCI Emerging Markets Free.

But December looks like being more favourable for the region. As of December 16th the Latin American markets had risen 1.4% while global markets and emerging markets in general had registered falls of 2.9% and 1.6% respectively.

The Brazilian market did particularly badly in November with a rise of 0.1% but it had registered a gain of 2.4% this month as of December 16th. In contrast, Argentina gained 4.4% in November but fell 2.6% in the first two weeks of December.

From a macroeconomic perspective the region is by far the wea

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Fernando Luque

Fernando Luque  is Senior Financial Editor at Morningstar Spain