Chile: Inflation accelerates in May on higher food prices
June 8, 2011
In May, consumer prices rose 0.4% over the previous month, which was a tad above both the 0.3% price rise recorded in April and market analysts' expectations of a 0.3% increase. The monthly jump mainly reflected higher prices for food and non-alcoholic beverages as well as for housing. As a result of the price increase, annual headline inflation inched up from 3.2% in April to 3.3% in May. The core inflation index, which excludes volatile categories such as oil, fresh fruits and vegetables, also rose 0.3% over the previous month. As a result, annual core inflation inched up from 2.4% in April to 2.5% in May. The Central Bank has a medium-term inflation target of 3.0%, with a 1% tolerance margin. However, the Bank expects inflation to end the year at 3.3%, before moderating to 2.9% by the end of 2012.