Economics
Surging Food Prices Test Latin America’s Top Central Banks
- Fruit and vegetables drove Mexico’s inflation higher
- Brazil policy makers have said food price shock is temporary
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Inflation sped up more than forecast in Mexico and Brazil as unrelenting food price increases defy central bank plans to support virus-ravaged economies with low interest rates.
Mexico’s consumer prices rose further above the official target range in October as fruit and vegetable costs soared, according to data published Monday, while food costs drove Brazil’s fastest inflation rate for that month since 2002. Those trends may complicate a final rate cut in Mexico this week while prompting greater caution among Brazilian policy makers who are looking to avoid rate increases at all costs.