IMF Regional Economic Outlook (REO): “Keeping Inflation Under Control”

Inflation in the region1—which rose to over 8 percent in August 2008—is expected to remain high through end-2008, before beginning to decline gradually in 2009.  For Latin America and the Caribbean, this surge in inflation is the first real on the region’s commitment to low inflation. To asses the challenges of keeping inflation under control, a recent study by IMF staff analyzes two related questions: (1) what are the main determinates of the inflation surge? and (2) how monetary policy has responded so far?.