Latin America News
LAST UPDATE: July 9, 2025
Chile Consumer Prices Tumble Twice as Much as Expected in June
Chile’s consumer prices fell 0.4% in June, twice the forecasted drop, with annual inflation easing to 4.1%. It was the steepest decline since 2023, and food and transportation costs led the slide.
Insight
This larger-than-expected drop may prompt Chile’s central bank to consider earlier interest rate cuts. With inflation within the target range, policy may shift toward economic stimulation.
Chile says it has not received information from U.S. on copper tariffs
Chile’s government stated it has received no formal notice from the U.S. regarding Trump’s proposed 50% tariff on copper imports. Chile is seeking clarity, especially about possible exemptions for refined products.
Insight
The lack of official communication reflects uncertainty in U.S.-Chile trade relations. Chile’s dependence on copper exports drives its efforts to minimize the impact and pursue diplomacy.
Brazil needs restrictive interest rates to meet inflation target, central bank chief says
Brazil’s central bank governor emphasized the need for prolonged high interest rates to anchor inflation expectations around its 3% target. Despite recent hikes, monetary policy will remain tight amid uncertain inflation dynamics.
Insight
This reflects Brazil’s priority on inflation control even at the risk of slowing growth. A firm stance on rates boosts policy credibility but may weigh on domestic demand.
Brazil’s retail sales miss forecasts, fall for second straight month
Retail sales in Brazil fell 0.2% in May, missing expectations and marking the second monthly decline. Rising interest rates and weakening consumer confidence are affecting spending.
Insight
Declining retail figures suggest growing pressure on Brazil’s domestic economy. High borrowing costs are dampening consumption, which could limit economic momentum in the second half of 2025.
Brazil’s Lula Hosts Modi in Bid to Turn India Into a Major Trade Partner
Brazilian President Lula hosted Indian PM Modi in Brasília on July 8, aiming to expand bilateral trade beyond traditional commodities like sugar and crude oil. Potential growth areas include sesame, ethanol, and aerospace cooperation with Embraer, while exploring an expanded deal via Mercosur.
Insight
Leaders are strategically leveraging the BRICS summit meeting to deepen economic ties. This initiative highlights Brazil’s desire to diversify trade, while India’s role in this partnership signals its growing global economic weight.
Milei Approval Rating Holds as Argentines Worry More About Jobs
In June, President Javier Milei’s approval and disapproval ratings both stood at 44%, with 12% undecided. While inflation has dropped and the currency stabilized, job concerns persist amid rising unemployment.
Insight
Milei retains a polarized but stable approval despite economic challenges. The job market concern reflects the social costs of his austerity and market reforms, which may limit his political room for bold policies.
