Rate considerably lower than the total inflation in the region
In 2024, energy inflation in Latin America and the Caribbean (LAC) was 1.51%. Although it increased compared to the sector’s inflation in 2023, it remains significantly lower than the region’s total inflation (4.03%). Moreover, the rise in energy prices in LAC in 2024 was much more moderate than that recorded in OECD countries (3.82%). This demonstrates that the region has managed to be more resilient to international price increases, thanks to its renewable energy resources and regulatory-tariff measures that have helped control energy prices. The Latin American and Caribbean Energy Organization (OLACDE) has published today its Energy Inflation Indicator for Latin America and the Caribbean (IE-LAC) for December 2024. This report provides an analysis of energy price trends in the region, which is crucial for understanding market behavior in the sector and its impact on the economy and sustainability of Latin American and Caribbean countries. Monthly energy inflation doubled compared to November 2024. This increase is attributed to the rise in electricity and fuel prices in several countries in the region, mainly from the third quarter of 2024, when many of them faced drought conditions.
Source: OLACDE, own elaboration based on information published by the Statistical Institutes and Central Banks of OLACDE Member Countries.
In December 2024, the annual energy inflation in Latin America and the Caribbean was 1.51%, a value that remains below the total inflation, which reached 4.03%.
Source: OLACDE, own elaboration based on information published by the Statistical Institutes and Central Banks of OLACDE Member Countries.
Energy inflation in OECD countries increased for the third consecutive month, reaching 3.82% in December 2024, with increases in 29 of the 38 OECD countries, marking one of the highest values since September 2024.
