Year-on-year energy inflation in Latin America and the Caribbean (LAC) showed a marked acceleration from March 2026 onward, rising from 2.12% in March to 6.41% in May 2026. This increase reflects the sensitivity of domestic energy prices to geopolitical tensions in the Middle East, supply risks, and fluctuations in international oil prices. Unlike energy inflation, headline year-on-year inflation followed a more stable trajectory, due to the cushioning effect of a broad basket of goods and services.
At the same time, average gasoline and diesel prices in LAC remained above their pre-conflict levels. By the end of June 2026, gasoline prices were around 16% above that level, while diesel prices were approximately 13% higher. The persistence of these price increases reflects the fact that the pass-through to domestic markets is neither immediate nor uniform, and depends on factors such as inventories, refining and transportation costs, insurance, taxes, subsidies, and national fuel price stabilization mechanisms.
