LAC’s monthly energy inflation between September and October 2025 declined, falling from 0.21% in September to 0.19% in October, a 9.5% reduction from the previous month, mainly because, of the 20 countries analyzed, 12 showed a decrease in the indicator, as several of them made tariff adjustments to electricity prices and fossil fuels.
Looking more broadly at the October 2024–October 2025 period, energy inflation shows very pronounced fluctuations, reflecting the volatility of energy basket prices; after the indicator’s peak in February 2025, an irregular pattern follows, with intervals of increases and decreases, confirming its sensitivity to external factors (international prices, exchange rates) and to domestic policies (subsidies, tariffs).
Total monthly inflation showed a sharper decline, from 0.38% in September to 0.30% in October 2025, indicating that the decrease was driven mainly by categories other than energy, such as food, goods, and services, which carry greater weight in the index. See Figure 1. It is worth noting that total inflation shows a more stable trend with moderate variations, while energy inflation shows greater volatility and sensitivity, with sharp swings ranging from 0% up to 0.83% over the period analyzed.
Annual energy inflation in October 2025 stood at 1.28%, down from the previous month and showing a variable pattern of increases and decreases, related mainly to the variability of both domestic and international prices that can affect energy basket prices.
Regarding total annual inflation, in October 2025 it followed a similarly downward trend as annual energy inflation, registering 3.5% and showing a more stable pattern than annual energy inflation. See Figure 2.
Year-on-year energy inflation in OECD countries remained stable at 4.22*% in October 2025, while in LAC it declined, showing that the region exhibits greater volatility and a sharper drop, while the OECD maintains higher and more stable levels.
Regarding energy inflation in the OECD, 20 countries recorded a decrease, 14 an increase, and 3 remained stable. However, in several countries, the drop in energy inflation followed an increase in September 2025, reflecting a base effect stemming from a significant reduction in energy prices between August and September 2024.
Figure 4 shows that the international oil price index posted a slight decline of 1.6%, while the natural gas price index fell 3.45%; these trends most likely explain the decline in LAC’s monthly energy inflation, from 0.21% in September to 0.19% in October 2025. The attached table shows the monthly variation in the WTI price, which was negative at -4.80% for October 2025, compared to -1.39% recorded in September 2025, and this deceleration would help explain the evolution of the price indices.
