Chile: Inflation ends year below Central Bank target
January 8, 2013
In December, consumer prices remained flat over the previous month, which followed the 0.5% drop registered in November and contrasted market expectations of a 0.1% increase. According to the statistical institute's press release, lower prices for food and non-alcoholic beverages completely offset higher prices for housing and utilities.
As a result, annual headline inflation fell from 2.1% in November to 1.5% in December, dropping below the Central Bank's target of 3.0% with a plus/minus 1.0 percentage points tolerance margin and marking the lowest year-end reading in the last three years. Meanwhile, the core inflation index, which excludes volatile categories such as oil, fresh fruit and vegetables, rose 0.3% over the previous month, contrasting November's 0.2% decrease. Annual core inflation fell from 1.7% in November to 1.4% in December.
In the latest Monetary Policy Report from December 2012, the Bank sees year-end inflation at 2.9% in 2013.