Chile: Inflation eases in September
October 8, 2013
In September, consumer prices rose 0.5% over the previous month. The increase met market expectations and was above the 0.2% rise recorded in August. According to the statistical institute, the monthly increase reflects higher prices for transport as well as for electricity and gas.
Annual headline inflation edged down from 2.2% in August to 2.0% in September. As a consequence, inflation is still within the Central Bank's target range of 3.0% plus/minus 1.0 percentage point.
The core inflation index, which excludes volatile categories such as oil, fresh fruit and vegetables, rose 0.6% in September over the previous month (August: 0.0% month-on-month). Annual core inflation inched up from 1.6% increase in August to 1.7% increase in September.
In its September Monetary Policy Report, the Bank indicated that it sees year-end inflation at 1.9% in 2013 and at 2.8% in 2014. LatinFocus Consensus Forecast panelists expect inflation to close the year at 2.8%, which is down 0.2 percentage points from last month's forecast. For 2014, inflation is expected to increase to 3.0%, which is unchanged from last month's estimate.
Author: Dirina Mançellari, Senior Economist