Chile: Inflation jumps in June but remains below Central Bank's target
July 8, 2013
In June, consumer prices jumped 0.6% over the previous month. The figure contrasted the flat reading recorded in May and was slightly above the 0.5% rise expected by market analysts. According to the statistical institute, the monthly jump was mainly due to higher prices for housing, utilities and transport.
Building on the monthly increase, annual headline inflation jumped from 1.0% in May to 1.9% in June and has now reached the highest level since November last year. Nevertheless, at the current level, inflation remains slightly below the plus/minus 1.0 percentage point tolerance margin around the Central Bank's target of 3.0%.
Meanwhile, the core inflation index, which excludes volatile categories such as oil, fresh fruit and vegetables, grew 0.3% over the previous month. Annual core inflation rose from 1.0% in May to 1.3% in June.
In the latest Monetary Policy Report from June, the Bank sees year-end inflation at 2.6% in 2013 and at 3.0% in 2014. LatinFocus Consensus Forecast panellists 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 at 3.0%.