Chile: Inflation dips in May, moves further from Central Bank's target
June 8, 2017
Consumer prices rose 0.1% in May compared to the prior month, down slightly from April’s 0.2% increase and matching analysts’ expectations. According to the National Statistical Institute (INE), May’s slight rise was underpinned by higher prices for recreation and culture, non-alcoholic drinks and tobacco and housing, while the prices of food and non-alcoholic beverages, clothing and footwear and transport fell month-on-month.
Inflation was 2.6% in May, ticking down from 2.7% in April and coming in below the Central Bank’s central target of 3.0%, although still within the 2.0%-4.0% tolerance range. Inflation has been trending steadily lower in recent months on the back of subdued demand-pull pressures and a fairly stable currency. After stripping out volatile categories such as oil, fresh fruit and vegetables, core consumer prices rose 0.2% in May, down from 0.3% in April, while core inflation was 2.5% in May, above April’s 2.2%.
Author: Oliver Reynolds, Economist