Inflation

The inflation rate for Latin America and the Caribbean as a whole in 1997 continued the downward trend begun in 1994. The rate of price increase, 888% in 1993, had been reduced to 18.5% by 1996, and in 1997 dropped further to only 10.4%, the lowest level in nearly 50 years. In the first half of 1998 inflation crept up slightly, but this by no means reversed the gains the region has made, which are all the more impressive in that they have coincided with a phase of regional output growth (5.3% in 1997). The inflationary pressures generated by the strong expansion of domestic demand were neutralized by the existence of idle capacity and the substantial increase in external supply. Moreover, an increase in the labour force dampened the potential for wage hikes resulting from a greater demand for labour.

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure

Peace, Justice and Strong Institutions