The joint statement was made after a periodic meeting of central bankers from Brazil, Argentina, Uruguay, Paraguay, Bolivia, Venezuela, Peru and Chile.

"The tasks of central banks is looking more complex," said the statement, which warned about the challenge of dealing with the growing risk of external price shocks at a time of red-hot domestic demand.

Higher global commodities prices, along with strong domestic consumption and investment, have prompted central banks in Peru, Chile and Brazil to tighten monetary policy this year. 

Earlier on Friday, Colombia's central bank raised its base rate to 3.25 percent, starting what appeared to be a new round of tightening. Brazil is expected to raise its benchmark Selic rate from 11.25 percent next week.

Clouding the inflation outlook further are oil prices, which have risen on political unrest in the Middle East, and concerns about the Eurozone's fiscal health and Chinese demand.

Chile and Peru both import much of their oil and, to limit inflation, Lima has moved to use government coffers to absorb some price increases so they are not passed along to consumers.

South American central banks are facing two dilemmas: the traditional tradeoff between price stability and short-term growth, and the risk of rate rises hurting exports by causing local currencies to appreciate.

"The reduction of monetary stimulus comes in the context of heavy capital inflows and appreciation pressures," the statement said. Many central banks slashed rates in 2009 during the global slowdown and only now are elevating them again.

Instead of rate increases that could affect currencies, some governments in Latin American have been using other measures to dampen inflation.

Those include spending cuts in Brazil to the tune of $30 billion and tariff reductions in Peru. Each country's economy grew around 8 percent last year.

Peruvian Central Bank President Julio Velarde said policy makers were acting prudently to keep inflation expectations under control.

"The strong rise in food and oil prices has prompted monetary policy responses that will allow us to deal with these issues, which are more complex each day," he said.