Chile: Inflation accelerates in June
July 8, 2011
In June, consumer prices rose 0.2% over the previous month, which was below both the 0.4% price rise recorded in May and market analysts' expectations of a 0.3% increase. The monthly increase mainly reflected higher prices for food and non-alcoholic beverages as well as for housing, which were partially offset by lower prices for clothing. As a result of the price increase, annual headline inflation inched up from 3.3% in May to 3.4% in June. The core inflation index, which excludes volatile categories such as oil, fresh fruits and vegetables, inched 0.1% higher over the previous month. Despite the increase, annual core inflation inched down from 2.5% in May to 2.4% in June. The Central Bank has a medium-term inflation target of 3.0%, with a 1% tolerance margin. In its last quarterly inflation report from June, the Bank lowered its year-end inflation expectation from 4.3% to 4.0%, before moderating to 3.0% by the end of 2012.