Chile: Inflation moves back within tolerance range in December
Consumer prices rose 0.1% in December compared to the prior month, matching November’s figure and marginally undershooting analysts’ expectations. According to the National Statistical Institute (INE), December’s rise was underpinned by higher prices for transport, while lower food and non-alcoholic drinks prices subtracted from the overall figure.
Inflation came in at 2.3% in December, up from 1.9% in November and thus moving back into the Central Bank’s 2.0%-4.0% tolerance range following six months of below-target readings. After stripping out volatile categories, core consumer prices rose 0.1% month-on-month in December, contrasting November’s 0.1% dip, while core inflation rose from 1.8% in November to 1.9% in December. The rise in inflation since September is likely to reduce pressure on the Central Bank to reduce rates in the near term.