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Economy / Bolivia

Macroeconomic Forecast Bolivia

November 2009 | Macroeconomic Forecasts

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BMI View: Inflation remains highly subdued in Bolivia, with the consumer price index only recording a 0.8% y-o-y (0.32% m-o-m) increase in October. Sluggish economic activity and softer commodity prices have helped drive down pressures. We do not see any significant inflationary threat on the horizon, despite the government's cash transfer programmes. Having said that, we do expect price growth to return in 2010, and currently see the headline measure increasing by 4.0%, which is lower than the 7.0% average recorded over the past 5 years.