LATAM Atlas
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Exchange rates and inflation: where money holds its value

Exchange rate to the dollar, inflation over recent years, the IMF forecast and a short “why” for the eight countries in the Atlas, all on one page. The figures update automatically; the commentary is written by the editors.

Inflation is the IMF annual average (WEO, April 2026); 2026+ is a forecast. Exchange rates are official as of 30 Sep 2026; Argentina also shows the “blue” rate. This is not investment advice.

Inflation by year, %

The grey area is the IMF forecast.

Inflation by year, %Chart of average annual inflation in the eight countries in the Atlas, 2018 to 2028, logarithmic scaleIMF forecast1%2%5%10%20%50%100%200%201820202022202420262028
  • Argentina10%
  • Uruguay5%
  • Paraguay4%
  • Colombia3%
  • Brazil3%
  • Chile3%
  • Mexico3%
  • Peru2%

The figure next to each country is the IMF forecast for 2028.

Logarithmic scale, otherwise Argentina would flatten everyone else.

In numbers

Average annual inflation, %. Grey bars are the IMF forecast.

Country2022202320242025202620272028
Argentina72.4133.5219.941.930.415.79.6
Brazil9.34.64.45.04.03.43.0
Chile11.67.63.94.22.93.33.0
Uruguay9.15.94.84.74.04.54.5
Paraguay9.84.63.84.13.33.53.5
Mexico7.95.54.73.83.93.43.0
Colombia10.211.76.65.15.95.23.4
Peru7.96.32.41.52.51.82.0
Bolivia1.72.65.119.520.7——
Venezuela186.5337.549.4252.0387.494.4—

Bolivia and Venezuela are shown for reference and are not in the Atlas.

By country

Exchange rate, inflation and forecast, and why the figures look this way.

Argentina

ARS · peso
Inflation 2025
41.9%
Exchange rate to USD
1,524
Street “blue” rate, +2% vs official
1,560
Monthly inflation, August 2026
1.7%
IMF forecast 2026 → 2027
30.4% 15.7%

Why it is this way

Decades of budget deficits financed by printing money, plus exchange-rate controls (“cepo”) alongside a parallel “blue” dollar. The peak came in 2023–2024: prices rose 200% a year. Since December 2023, Milei’s government has sharply cut spending, moved the budget into surplus and devalued the peso — and inflation has been falling.

What to expect

The IMF expects inflation to slow to ~30% in 2026 and ~16% in 2027 — if the surplus holds and the exchange rate stays within its band. Risks: depleted reserves and elections. For anyone moving there: prices in pesos keep rising, but dollar prices rise more slowly; budget in dollars.

Brazil

BRL · real
Inflation 2025
5.0%
Exchange rate to USD
5.22
IMF forecast 2026 → 2027
4.0% 3.4%

Why it is this way

The 1994 Real Plan ended the hyperinflation of the 1980s–90s; since 1999 the central bank has been independent, with a 3% target. Inflation holds at 4–5% because of the budget deficit and a weak real; the central bank fights it with an interest rate of about 15% — one of the highest in the world.

What to expect

IMF: 4% in 2026, 3.4% in 2027. The main risk is the budget: the market does not believe in spending discipline, hence the expensive credit. Prices are stable; mortgages and loans are very expensive.

Chile

CLP · peso
Inflation 2025
4.2%
Exchange rate to USD
967
IMF forecast 2026 → 2027
2.9% 3.3%

Why it is this way

The most predictable central bank in the region, with a 3% target. The 2022 spike (11.6%) came from pandemic payouts and early withdrawals of pension savings, which overheated demand. Interest rates brought it back to normal within two years.

What to expect

IMF: 2.9% in 2026, ~3% after that. Chile is the benchmark for price stability in the region, but also the most expensive of its neighbors.

Uruguay

UYU · peso
Inflation 2025
4.7%
Exchange rate to USD
40.1
IMF forecast 2026 → 2027
4.0% 4.5%

Why it is this way

For thirty years inflation sat at 7–9%: wages and rents were tied to past inflation and kept reproducing it. Since 2023, the central bank has held its 4.5% target for the first time — helped by a high interest rate and a strong peso.

What to expect

IMF: 4–4.5% for years to come. Stable, but expensive: a strong currency makes Uruguay one of the costliest places in the region in dollar terms.

Paraguay

PYG · guaraní
Inflation 2025
4.1%
Exchange rate to USD
5,891
IMF forecast 2026 → 2027
3.3% 3.5%

Why it is this way

The guaraní is the oldest currency in South America that has never been reissued: no redenominations, no defaults. Low government debt, a central bank target of 3.5%, and an economy built on soy exports and Itaipú energy.

What to expect

IMF: 3.3–3.5%. Boring in a good way: prices are predictable and the country is cheap. Risk: droughts, which exports depend on.

Mexico

MXN · peso
Inflation 2025
3.8%
Exchange rate to USD
18
IMF forecast 2026 → 2027
3.9% 3.4%

Why it is this way

The central bank targets 3% ±1, and policy has been tight since the 1994 crisis. The 2022 peak was 7.9% (global inflation), followed by a gradual decline; interest rates remain high.

What to expect

IMF: ~3.9% in 2026, 3.4% in 2027. The key variable is trade with the US and tariffs: both the peso and prices depend on them.

Colombia

COP · peso
Inflation 2025
5.1%
Exchange rate to USD
3,367
IMF forecast 2026 → 2027
5.9% 5.2%

Why it is this way

The 2023 peak was 11.7%: food prices, the end of fuel subsidies and a weak peso. The decline is slow: the minimum wage is indexed to past inflation and drags prices along with it.

What to expect

IMF: 5.9% in 2026, 5.2% in 2027 — above the 3% target for several more years. Credit is expensive and the peso is volatile.

Peru

PEN · sol
Inflation 2025
1.5%
Exchange rate to USD
3.44
IMF forecast 2026 → 2027
2.5% 1.8%

Why it is this way

The lowest inflation in the region: a 2% target, a central bank independent since 2002, a partly dollarized economy and a strong sol. The hyperinflation of 1990 (7,500%) is remembered and has not been repeated.

What to expect

IMF: 1.5–2.5%. Prices behave as in a developed country; the risk is political instability, but so far it is not putting pressure on prices.