Chile: Inflation inches down in February
March 8, 2017
Consumer prices in Chile rose 0.2% in February compared to the previous month, down from January’s 0.5% rise and coming in slightly below analysts’ expectations of a 0.3% rise. According to the National Statistical Institute (INE), February’s figure was underpinned by a broad-based rise in prices, with the food and non-alcoholic beverages, clothing and footwear and housing and basic services sub-categories recording the largest price rises. Communications and recreation and culture were the only two sub-categories in which prices dropped in February relative to the prior month.
Inflation was 2.7% in February, marginally down from January’s 2.8% and comfortably within the Central Bank’s target range of 2.0%-4.0%. After stripping out volatile categories such as oil, fresh fruit and vegetables, core consumer prices rose 0.2% in February, down from 0.5% in January, while core inflation dropped from 2.7% in January to 2.3% in February, the lowest figure since December 2013.
Author: Oliver Reynolds, Economist