LatAm’s Energy Inflation Steady Despite Oil Price Surge In June

Energy inflation in Latin America and the Caribbean (LAC) remained subdued in June 2025, underscoring the region’s resilience against recent volatility in international oil markets. According to the OLADE’s Latin America and Caribbean Energy Inflation Index (IE-LAC), monthly energy inflation stood at 0.05%, slightly higher than May but still signaling stability. On an annual basis, the index eased to 1.26%, down from 2.26% in June 2024.

The figures contrast with global oil price movements. Benchmark WTI crude climbed 9.65% in June, yet this surge did not translate into higher regional energy prices. Instead, the LAC index rose only 0.22%, highlighting the disconnect between global commodity shifts and domestic energy costs. Analysts point to the region’s pricing structures and regulatory buffers as factors insulating consumers from sharper increases.

By comparison, energy inflation across the OECD reached 0.92% year-on-year in June. LAC has now posted higher energy inflation than the OECD for four consecutive months, though both remain well below levels seen in previous years.

Data also shows that while international prices for crude oil, natural gas, and coal remain lower than in early 2023, LAC’s energy inflation index is 8.9% above its January 2023 baseline. This divergence underscores the region’s unique dynamics, where regulatory frameworks, subsidies, and structural costs continue to shape outcomes differently from global markets.