Latin America 2025–2026: Currency, Inflation & Mobility Cost Implications

March 4, 2026
Link to LATAM

This briefing outlines key macroeconomic trends across Latin America and their direct impact on Global Mobility service delivery, including Household Goods (HHG) Relocation, Destination Services (DSP), and Immigration Services. It is designed as a client-ready one- to two-page summary to support conversations regarding the need to review and update commercial terms.

1. Currency Appreciation Across Latin America

Latin American currencies strengthened significantly against the U.S. dollar during 2025 due to weaker USD performance, strong carry-trade inflows, and elevated interest rate differentials. Key movements include:

Brazilian Real (BRL): ~14% appreciation, supported by high interest rates and investor inflows.
Mexican Peso (MXN): ~23% appreciation in 2025, driven by carry trades and USD weakness.
Colombian Peso (COP): ~15–17% in 2025 + ~2% in early 2026, supported by elevated policy rates.
Chilean Peso (CLP): ~6–7% recovery, following improvements in inflation and terms of trade.
Peruvian Sol (PEN): ~5–6% appreciation, maintaining its position as one of the region’s most stable currencies.

Impact on Mobility Costs: As currencies appreciate, all locally sourced services – including movers, packing crews, DSP consultants, legal processors, translators, and logistics suppliers – become more expensive in USD terms.

2. Inflation & Service-Sector Pressures

Although headline inflation has eased throughout the region, service-sector inflation – which directly impacts HHG labor, DSP personnel costs, and immigration processing – remains elevated. Notable 2026 readings include:

Brazil: 4.44% YoY (Jan 2026). Services categories remain above target.
Mexico: 3.79% YoY (Jan 2026). Core inflation driven by wages and services.
Chile: 2.8% YoY (Jan 2026). Nearing target but still showing pressure in services.
Peru: 1.7% YoY (Jan 2026). Transport and food costs impact logistics.
Colombia: 5.35% YoY (Jan 2026). Persistent services inflation and wage effects.

Service-based industries continue to face upward cost pressures due to wage indexation, transport costs, energy fluctuations, and increased regulatory/administrative requirements in immigration and compliance workflows.

3. Slowing Regional Growth & Operational Implications

Regional GDP growth is projected at approximately 2.2% in 2025 and between 1.8% and 2.3% in 2026. This slower growth environment typically increases operational strain, reduces productivity, and raises delivery costs across mobility ecosystems.

For Global Mobility providers, this manifests in tighter labor markets, higher logistics costs, longer processing times, and increased compliance-related workload – all of which directly impact the cost to serve.

4. Implications for Global Mobility Programs

Because service delivery costs have increased materially while USD-based contract rates have remained fixed, previously negotiated fee structures no longer reflect the operational realities across Latin America. Mobility providers have absorbed these increases for 12–24 months, but sustaining service quality now requires recalibration of commercial terms. This need is further amplified by the industry’s heightened expectations around sustainability commitments, compliance certifications, robust data protection and cybersecurity standards, and continued investment in AI capabilities.

5. Recommendation

We recommend engaging in a collaborative review of HHG, DSP, and Immigration fee structures for 2026. Adjustments will ensure continued service quality, compliance assurance, and adequate operational capacity in a higher-cost regional environment.

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