Chile: Inflation eases in June
July 8, 2014
In June, consumer prices were unchanged over the previous month. The figure undershot the 0.3% increase tallied in May and marked the smallest print since May 2013. According to the statistical institute, the monthly reading reflected the fact that higher prices for food and non-alcoholic beverages as well as for transportation offset lower prices for alcoholic beverages and tobacco.
Annual headline inflation fell from 4.7% in May to 4.3% in June. June’s reading undershot the 4.5% rate the market had expected. Despite the drop, inflation is above 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 0.1% over the previous month (May: +0.3% month-on-month). Annual core inflation remained stable at May’s 4.0%.
Author: Dirina Mançellari, Senior Economist