Chile: Inflation hits highest level in over five years
June 6, 2014
In May, consumer prices rose 0.3% over the previous month. The increase was just half of the 0.6% rise recorded in April. According to the statistical institute, the monthly increase mainly reflected higher prices for food and non-alcoholic beverages as well as for transportation.
Annual headline inflation surged from 4.3% in April to 4.7% in May, which marked the highest rate since January 2009 and slightly overshot market expectations of a rise to 4.6%. Inflation remains above the Central Bank’s target range of 3.0% plus/minus 1.0 percentage points. The core inflation index, which excludes volatile categories such as oil, fresh fruit and vegetables, rose 0.3% (April: +0.8% month-on-month). Annual core inflation increased from 3.7% in April to 4.0% in May, which marked the highest rate since April 2009.
Author: Dirina Mançellari, Senior Economist