Chile: Inflation comes in at highest level since July 1994 in May
Consumer prices rose 1.20% in May over the previous month, moderating from the 1.40% increase logged in April. Looking at the details of the release, prices for food and non-alcoholic beverages rose at a weaker pace in May, while price growth for housing, utilities and fuel was broadly stable from the previous month’s reading. Meanwhile, transportation prices expanded at a stronger pace, while prices for healthcare grew at a more subdued pace.
Inflation came in at 11.5% in May, up from April’s 10.5%. May’s result represented the highest inflation rate since July 1994, and was far above the Central Bank’s 3.0% target. Higher international energy and food prices and renewed supply constraints have spurred inflation in recent months. Meanwhile, the trend pointed up, with annual average inflation coming in at 7.1% in May (April: 6.5%). Finally, core inflation rose to 9.0% in May, from the previous month’s 8.3%.