Chile: Inflation increases to 15-month high in July
August 8, 2018
Consumer prices rose 0.4% from the previous month in July, up from June’s 0.1% increase. July’s result marked the highest reading since January and came in slightly above market expectations of a more moderate 0.3% rise. According to the National Statistical Institute (INE), stronger inflationary pressures primarily stemmed from higher prices for transport services.
Inflation picked up pace for the fourth consecutive month in July, hitting a 15-month high of 2.7% (June: 2.5%). As a result, inflation edged closer to the mid-point of the Central Bank’s 2.0%–4.0% tolerance range. Meanwhile, average inflation over the last 12 months remained unchanged at the previous month’s 2.0% in July.
After removing volatile categories such as fruit, vegetables and fuel, core consumer prices increased 0.3% month-on-month in July, up from June’s flat reading. Meanwhile, core inflation remained stable at 1.9% in July.
Chile Inflation Forecast
The Central Bank predicts year-end inflation of 2.3% in 2018 and 3.0% in 2019. FocusEconomics Consensus Forecast panelists expect inflation to end 2018 at 2.8%, which is unchanged from last month’s forecast. The panelists see inflation ending 2019 at 3.1%.
Author: Almanas Stanapedis, Economist