Inflation Outlook To Remain Precarious

July 2008 | Economic Analysis

Nicaragua continues to post some of the ugliest inflation figures in the region. Headline prices grew by 11.7% in H108 (and an unprecedented 23.1% y-o-y in June) - almost double the government's full-year projection. We are still of the view that inflation will start to cool in the latter stages of H208 as commodity prices continue to come off recent highs.

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