Macroeconomic Forecast Bolivia

BMI View: Consumer price inflation in Bolivia remained elevated in November 2011, coming in at 8.3% y-o-y. Though this was the lowest reading since January 2011, inflation remains relatively high by historical standards, largely due to high base money, private sector credit growth and a rising import bill. We believe inflation will temper to an average of 5.0% y-o-y in 2012, as monetary stimulus becomes increasingly ineffective, commodity prices moderate and credit growth cools over the course of the next 12 months.

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