LAC’s monthly energy inflation in August 2025 was 0%. Half of the 20 countries analyzed in the region recorded negative variations in price indices (they fell).
On the other hand, total monthly inflation fell from 0.31% in July to 0.19% in August and reached its lowest value so far this year. See Figure 1.
Annual energy inflation in LAC continued to decline for the third consecutive month, reflecting a slowdown in the growth of the energy basket price index. In August 2025, it stood at 0.77%, a value significantly lower than that recorded in the same month of 2024, when it reached 3.36%. In contrast, total annual inflation rose last month, rising from 3.45% in July to 3.64% in August, showing an increase in total price indices. See Figure 2.
Year-on-year energy inflation in OECD countries increased from 0.34% in July to 0.7% in August 2025, while in LAC it decreased from 1.01% in July to 0.77% in August 2025. For five consecutive months, year-on-year energy inflation in the OECD remained below that recorded in LAC. However, in August 2025, LAC and the OECD reached approximately the same value of 0.7%, despite differences in local prices, types of fuels that make up the energy basket or consumption structures. See Figure 3.
Figure 4 shows that the three international energy price indices (oil, gas, coal) had a decrease in August 2025, the most pronounced being the fall in the natural gas price index with -6.7%; with high probability, this behavior explains (in large part) that monthly energy inflation in half of the LAC countries analyzed decreases. In fact, the Table below reflects that the monthly variation of the WTI price was also negative, -5.16%, a trend that is consistent with the previously mentioned evolution of the price indices.
