Chile: Inflation accelerates in October on higher food prices
November 8, 2011
In October, consumer prices rose 0.5% over the previous month, which mirrored the result recorded in September but overshot market analysts' expectations, which had prices increasing by just 0.3%. The monthly reading mainly reflected higher prices for food and non-alcoholic beverages, as well as for transport. Annual headline inflation rose from 3.3% in September to 3.7% in October, which is above the Central Bank's target of 3.0%, and marks the highest level since April 2009. The core inflation index, which excludes volatile categories such as oil, fresh fruit and vegetables, inched 0.3% higher over the previous month. As a result of the monthly increase, annual core inflation edged up from 2.2% in September to 2.5% in October. The Central Bank expects inflation to end the year at 3.3%, before moderating to 2.9% by the end of 2012.