Chile: Inflation moderates in January
February 8, 2014
In January, consumer prices rose 0.2% over the previous month. The figure, which was below the 0.6% increase recorded in December, met market expectations. According to the statistical institute, the monthly increase mainly reflects higher prices for transportation, which offset lower prices for food and non-alcoholic drinks. Annual headline inflation edged down from 3.0% in December to 2.8% in January. As a result, inflation remains within the Central Bank's target range of 3.0% plus/minus 1.0 percentage point. The core inflation index, which excludes volatile categories such as oil, fresh fruit and vegetables, inched down from 0.3% in December to 0.2% in January. Annual core inflation rose from 2.3% in December to 2.4% in January. The Bank sees 2014 year-end inflation at 2.5%. LatinFocus Consensus Forecast panelists expect inflation to close 2014 at 2.8%, which is down 0.1 percentage points from last month's forecast. For 2015, inflation is expected to increase to 2.9%.
Author: Dirina Mançellari, Senior Economist