Chile: Inflation inches up in August
September 7, 2012
In August, consumer prices added 0.2% over the previous month, which followed the flat reading registered in July and undershot market expectations of a 0.3% increase. According to the press release, higher prices for food and non-alcoholic beverages as well as for utilities drove the monthly increase. As a result, annual headline inflation inched up from 2.5% in July to 2.6% in August, which remains 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, fell 0.2% over the previous month, contrasting July's 0.1% increase. Annual core inflation followed suit and fell from 2.4% in July to 2.0% in August. In the latest Monetary Policy Report from September, the Bank cut its year-end inflation forecast to 2.5% from the previous 2.7% rate. For 2013, monetary officials left the year-end inflation forecast unchanged at 3.0%.