Chile: Inflation hits five-month high
November 8, 2012
In October, consumer prices rose 0.6% over the previous month, which was below the 0.8% increase registered in September but exceeded market expectations of a 0.3% increase. According to the statistical institute's press release, higher prices for food and non-alcoholic beverages as well as for housing and utilities drove the monthly increase. As a result, annual headline inflation inched up from 2.8% in September to 2.9% in October, a five-month high, which remains comfortably within the Central Bank's target of 3.0% with a plus/minus 1.0 percentage points tolerance margin. Meanwhile, the core inflation index, which excludes volatile categories such as oil, fresh fruit and vegetables, added 0.2% over the previous month, down from September's 0.5% increase. Annual core inflation, however, inched down from 2.2% in September to 2.1% in October. In the latest Monetary Policy Report from September, the Bank sees year-end inflation at 2.5%. For 2013, monetary officials expect inflation to end the year at 3.0%.