Macroeconomic Forecast Puerto Rico

Consumer price inflation ticked up in April to 2.0% y-o-y from 1.6% in March, encouraging us to revise our end-2012 inflation forecast from 1.0% to 1.4%. While we expect Puerto Rico to return to positive growth territory this year, growth will remain subdued, and we forecast real GDP to come in at 1.3% in 2012. That said, domestic demand will remain relatively weak, keeping a lid on prices.

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