Chile: Inflation jumps to highest rate since May 2009
January 7, 2011
In December, consumer prices rose 0.1% over the previous month. The increase was broadly in line with market expectations and matched the November rise. The monthly reading reflected an increase in prices for transport (+0.7% month-on-month) and education (+1.0% mom), which were partially offset by lower prices for leisure and clothing. Despite the moderate price increase, annual headline inflation rose from 2.5% in November to 3.0% in December, which marks the highest rate since May 2009. The core inflation index, which excludes volatile categories such as oil, fresh fruits and vegetables, rose 0.3% over the previous month, lifting annual core inflation from 2.0% in November to 2.5% in December. The Central Bank has a medium-term inflation target of 3.0%, with a 1% tolerance margin, and currently expects inflation to close the year at 3.3% before moderating to 3.0% by the end of 2012.