Chile: Inflation eases in March
Consumer prices rose 0.2% in March compared to the prior month, up from February’s flat reading but falling shy of analysts’ expectations of a 0.4% uptick. According to the National Statistical Institute (INE), the rise was driven by increased prices for education and food and non-alcoholic beverages, which were partially offset by a drop in transport prices.
Inflation slid from 2.0% in February to 1.8% in March, falling below the lower bound of the Central Bank’s 2.0%–4.0% tolerance range. After removing volatile categories such as fruit, fresh vegetables and fuel, core consumer prices rose 0.3% month-on-month in March, up from 0.1% in February, while core inflation came in at 1.6%. The significant appreciation of the peso against the dollar since December last year is likely playing a key role in subduing price pressures.