The Monetary Fund does not expect much prolonged inflation in Latin America.

According to data from the latest International Monetary Fund (IMF) report, inflation in Latin American countries will not be sustained in the long run, as a recovery is estimated in two years.

The region is currently experiencing a historic inflationary escalation, the organization recalls in its analysis. Chile, one of the top five Latin American economies, has suffered the most, with an inflation rate of more than 12 percent.. The other major economies in the region that were also affected by inflation are Colombia, Mexico, Brazil and Peru, where rates range from 8 percent to 10 percent.

However, according to the report published by the IMF under the name “Outlook for the Americas,” predicts that in these five major Latin American economies, significant recovery is expectedwith inflation rates below 5 percent (normal values for the region) by 2024.

But the recovery will happen, as recommended by the IMF.if institutions focus on controlling inflation in the long run and do not focus their efforts on short-term policies.. All this bearing in mind that much of inflation comes from external factors.

According to the paper, inflation Is mainly due to global factorsdue to rising commodity prices. All caused by problems such as the current war between Russia and Ukraine.

The IMF notes that rising inflation rates in major Latin American economies are testing the credibility of central banks and the monetary policies used to try to control the phenomenon.

It adds that so far these measures have not borne fruit because. Inflation is expected to continue to rise in the short run.. In fact, a report published by the IMF in the middle of this year estimated that overall inflation in Latin America would be 12 percent, the highest in 25 years, according to the IMF. reported CryptoNews.

According to the analysis presented by the IMF, among the countries that will experience the greatest contractions in the short term due to rising inflation, Venezuela would be an exception. In this case, the IMF estimates that the South American country will experience slight growth, having left behind the severe crisis generated by hyperinflation and in the context of an easing of economic restrictions imposed by the United States. The Caribbean country, along with Argentina, is among the countries expected to already in the presence of high inflation even before the war in Ukraine.