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Economy / Nicaragua

Macroeconomic Forecast Nicaragua

November 2010 | Macroeconomic Forecasts

BMI View: Consumer price inflation (CPI) in Nicaragua increased to 6.9% y-o-y in October, up from 4.6% in September - a 2.2% month-on-month price rise. Inflation is now at the highest level since April 2009, yet we believe that prices are likely to normalise (as food price pressures decrease) throughout the remainder of the year, heading towards our target at 5.0% for end-2010. That said, over a longer time frame we do expect both domestic and external price pressures to lift inflation higher, and are consequently forecasting CPI at 7.5% by end-2011.

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