NEW YORK ( TheStreet) - With all the attention being given to Asian inflation, we think investors should also be aware of similar issues in Latin America.Brazil, Chile, and Mexico all reported higher than expected CPI data for December today, and continues a region-wide trend after Colombia and Uruguay did the same earlier this week. Peru delivered an unexpected 25-basis point hike Thursday despite a slight easing in inflation in December, and we expect continued tightening from the region in 2011. Brazil monetary policy outlook for a 50 basis-point hike on Jan. 18 to 19 was cemented after December IPCA inflation rose 0.63% month over month and 5.91% year over year. This is the highest year-over-year rate since November 2008, when the policy rate was at its pre-Lehman high of 13.75% for that cycle. We expect at least 200 basis points of total tightening in 2011 compared to market expectations of 150 basis points, as we believe inflation could edge closer to the upper limit of the 2.5% to 6.5% target band in the coming months. According to the last survey by the central bank, inflation expectations continue to creep higher, now at 5.32% for 2011 and also well above the 4.5% target. USD/BRL continues to have trouble breaking 1.70, despite the FX measures taken this week. If the central bank embarks on the aggressive tightening cycle that we expect, USD/BRL is likely to retest the 1.6435 low in the coming weeks, and we expect any break of that area to bring on more FX measures. For now, investors seem to be playing the 1.65 to 1.70 range.