Chile: Inflation falls to over one-year low in July
Inflation fell to 6.5% in July below June’s 7.6%. July’s figure marked the weakest inflation rate since October 2021, but was still more than double the Central Bank’s 3% target. Looking at the details of the release, prices for food and non-alcoholic beverages and housing, utilities and fuel rose at a softer pace in July, while transport prices fell.
Annual average inflation fell to 11.1% in July (June: 11.7%). Meanwhile, core inflation fell to 6.2% in July, from the previous month’s 6.9%.
Finally, consumer prices rose 0.35% over the previous month in July, contrasting June’s 0.15% drop. July’s figure marked the highest reading since March.
On the implications for monetary policy, Itaú Unibanco analysts said:
“Even though today’s print was marginally above market expectations (and the last prior to the Sep 5 monetary policy meeting), the swift disinflation process continues, leaving the door open for another 100bp rate cut in September (to 9.25%).”