During the last few years, there has been a widespread debate about the role of asset prices in the determination of monetary policy. Monetary authorities have traditionally used a Monetary Conditions Index, which is a weighted average between the interest rate and the exchange rate, in order to assess the conditions of the market to determine the correspondent changes in policy. Goodhart (2001) proposed a Financial Condition index for the G-7 countries where some weight could be assigned to asset prices and housing prices. This Financial Conditions Index is found by using a reduced form coefficient estimates and a VAR model. This paper pretends to find this Financial conditions Index for a group of middle income countries. The idea is to compare the role of asset prices in less developed economies in forecasting inflation. It has been found that the effect of financial assets is small, but housing prices are particularly important in most of them, especially Mexico, Turkey and Colombia. The Financial Conditions index is good predictor for prices in Chile, Mexico and Colombia.