Chile: Inflation dips slightly in December
January 6, 2017
Consumer prices fell 0.2% in December over the previous month, contrasting November’s 0.1% increase and coming in below market expectations of a 0.1% rise. According to the National Statistical Institute (INE), December’s increase reflects a broad-based decline in prices in categories such as food and non-alcoholic drinks, alcoholic drinks and tobacco, and footwear and clothing, while transport and restaurants and hotels were the only two categories which saw significant price rises compared to the prior month.
Inflation was 2.7% in December, below November’s 2.9% reading and marking the lowest rate since November 2013, although inflation remains within the Central Bank’s target range of 2.0%-4.0%. Core consumer prices, which exclude volatile categories such as oil, fresh fruit and vegetables, were entirely flat in December compared to the previous month, following a 0.2% rise in November. Core inflation dipped from 3.2% in November to 2.9% in December.
Author: Oliver Reynolds, Economist