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The period of inflationary relief experienced by the energy sector in Latin America and the Caribbean (LAC) has come to an end. After reaching its lowest level of the period under analysis\u2014close to zero\u2014in February 2026, regional energy inflation began to accelerate steadily from March onward, driven by escalating geopolitical tensions in the Middle East and the Strait of Hormuz.<\/p>\n
According to our report, the region’s year-on-year energy inflation jumped to 2.12% in March, increased to 4.52% in April, and climbed further to 6.41% in May 2026. The May figure is more than three times the level reported just two months earlier.<\/p>\n
In contrast, the overall consumer price index (CPI) in LAC remained comparatively stable, posting moderate increases over recent months and closing at 4.13% in May. This divergence reflects the fact that the broader inflation index is better able to absorb external shocks through its diversified basket of goods and services, whereas the energy sector is directly exposed to global price disruptions.<\/p>\n