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The Peso was badly hit during the holiday period dropping 4.87% to over 5,000 once again...

It has been a busy week for President Petro with visits to Santiago, Chile and Caracas, Venezuela.

CPI may yet go higher, obviously not to those seen on the streets of Caracas or Buenos Aires, but only Chile (13.3%) amongst the mainstream Latam economies has higher inflation.

Even though Christmas is this coming weekend, the week ahead will feature a number of economic releases.

Looking back on the week several data points were published; none of which were particularly positive.

What we did see from the latest Fedesarrollo survey was the expectation that interest rates will rise to 12% by year end.

Ironically despite the stubborn inflation, the Central Bank at this Friday's meeting will not be increasing rates.

While the president is away at the COP27 summit, inflation hit a 23 year high, which will no doubt affect the coming minimum wage increase.

The Central Bank will sit down shortly over fine Colombian coffee and, no doubt, a few cheeky pastries to discuss what to do about interest rates. The current 10% is not going to get the job done and the consensus is for a move to 11%. The question that remains is whether that is...

Perhaps the biggest concern is the perception of mixed messages between President Petro and Finance Minister Ocampo.