Hello, and welcome to the Latin America Weekly newsletter! In this issue: Why inflation is so low in Bolivia. How Panama is trying to bounce back from the Covid crisis. Racism in South American football. And the drunken Malvinas deal.
Inflation is on the rise … except in Bolivia
Much has been said about the rising inflationary wave in the world and Latin America, but one country in the region is bucking the trend. Bolivia is not merely showing the best numbers in the region, but it even posted negative inflation figures last month, while most other countries struggled with steeper price jumps than usual due to the consequences of the war in Ukraine.
By the numbers. Bolivian inflation was at a negative 0.05 percent between February and March, while price hikes throughout the last 12 months barely reached 0.77 percent, comfortably beating dollarized Ecuador for the top position.
Why it matters. The regional yearly inflation average stands at around 10 percent, while outliers such as Venezuela and Argentina show even steeper struggles.
Exchange rate. One thing Ecuador and Bolivia have in common is the lack of a floating currency of their own. Ecuador dollarized its economy in the year...