Chile: Inflation inches down in August
September 6, 2013
In August, consumer prices rose 0.2% over the previous month. The rise was slightly below both the 0.3% increase recorded in July and market expectations which saw inflation increasing at the same rate as in the previous month. According to the statistical institute, the result was mainly due to higher prices for transport and utilities.
Annual headline inflation in August was stable at the 2.2% increase recorded in July. Inflation is still within 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, showed flat growth in August compared to the previous month (July: +0.1% month-on-month). Annual core inflation inched up from 1.3% increase in July to 1.6% increase in August.
In its September Monetary Policy Report, the Bank indicated that it sees year-end inflation at 1.9% 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%.
Author: Dirina Mançellari, Senior Economist