Chile: Inflation drops to five-month low in January
January 8, 2015
In January, consumer prices rose 0.1% over the previous month. The print contrasted the 0.4% decrease observed in December and marked a three-month high. According to the Statistical Institute, the monthly reading mainly reflected that higher prices for food, drinks and tobacco offset lower prices for clothing and transport.
Annual headline inflation inched down from 4.6% in December to 4.5% in January, which was the lowest figure in five months. The figure came in above the 4.2% inflation rate the market had expected. As a result, inflation is now closer to the upper bound of the Central Bank’s target range of 3.0% plus/minus 1.0 percentage points. The core inflation index, which excludes volatile categories such as oil, fresh fruit and vegetables, rose 0.6% over the previous month in January (December: +0.3% month-on-month). Annual core inflation rose from December’s 5.1% to 5.5% in January, which marked the highest value since February 2009.
Author: Dirina Mançellari, Senior Economist