Macroeconomic Forecast NicaraguaMay 2012 | Macroeconomic Forecasts
Despite an earlier statement by Nicaragua's central bank that it intends to focus on ensuring more benign inflationary conditions in 2012, we forecast inflation will remain elevated, averaging 8.2%. This represents an upward revision on our part from our original 7.7% forecast, after inflation came in at 8.6% y-o-y in March 2012, bringing the year-to-date print up to 8.5%. In the coming months, we believe high oil prices combined with a recent 12.5% minimum wage hike is likely to contribute to continued elevated price pressures.
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