Chile: Inflation comes in at highest level since December 2008 in November
Consumer prices increased 0.50% in November over the previous month, after the 1.34% increase recorded in October. November’s result marked the weakest reading since August. The moderation was broad-based, with lower price pressures recorded for food and non-alcoholic beverages, housing, utilities and fuel, and transportation. In addition, prices for healthcare dropped.
Inflation came in at 6.7% in November, which was up from October’s 6.0% and well above the Central Bank’s 3% target. Elevated inflation in recent months has been driven by a mixture of vast fiscal stimulus at home, a wilting peso and higher international energy prices. November’s reading represented the highest inflation rate since December 2008. Annual average inflation rose to 4.2% in November (October: 3.8%). Finally, core inflation rose to 5.8% in November, from October’s 5.1%.