Chile: Inflation falls in October
November 8, 2013
In October, consumer prices rose 0.1% over the previous month. The figure met market expectations and was below the 0.5% rise recorded in October. According to the statistical institute, the monthly increase reflects higher prices for food, beverages and tobacco, which were almost completely offset by a decrease in prices for transportation as well as in education and recreation.
Annual headline inflation fell from 2.0% in September to 1.5% in October. As a result, inflation is below 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 0.3% in October over the previous month, down from the 0.6% increase recorded in September. Annual core inflation inched up from a 1.7% increase in September to a 1.8% increase in October.
In its September Monetary Policy Report, the Bank indicated that it sees year-end inflation at 2.6% 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