Chile: Inflation comes in at highest level since August 1994 in April
Consumer prices increased 1.40% over the previous month in April, slowing down from March’s 1.86% rise. The cooling of price pressures was primarily driven by slower growth in prices for food and non-alcoholic beverages. That said, the month-on-month rise was still extremely elevated by historical standards.
Inflation came in at 10.5% in April, up from March’s 9.4%. April’s reading represented the highest inflation rate since August 1994 and was even further above the Central Bank’s 3% target. Annual average inflation rose to 6.5% in April (March: 5.9%). Lastly, core inflation rose to 8.3% in April, from the previous month’s 7.4%. Until recently inflation was being driven by fiscal stimulus and a weak peso. Since February, higher international energy and food prices and renewed supply constraints have further intensified price pressures.