Gauging EM real yields based on prevailing inflation rates may be a little

retrospective; but as EM inflation, on aggregate, continues to surprise on the upside, it is a starting point for value comparison vs peers (page 2, Figure 1). We have highlighted over the past few months that inflation in LatAm has outpaced other regions (i.e., CEEMEA and especially vs Asia), with price pressures being stronger than expected (EM Action: Inflation impulse & implied rates, 13 September 2021). This has been met in LatAm with more aggressive policy tightening (EM Action: Inflation impulse & implied rates, 13 September 2021) and greater-than-expected policy rate rises at recent central bank meetings, e.g. Brazil (+150bp vs +100bp at prior meeting), Chile (+125bp vs +75bpat prior meeting) and Colombia (+50bp vs +25bp at prior meeting).