Chile: Inflation picks up in January
February 8, 2017
Consumer prices in Chile rose 0.5% in January compared to the previous month, contrasting December’s 0.2% fall and coming in substantially above analysts’ expectations of a 0.2% rise, marking the largest increase for 17 months. According to the National Statistical Institute (INE), January’s figure was underpinned by a broad-based rise in prices, with the alcoholic beverages and tobacco, transport and health sub-categories recording the largest price increases. Food and non-alcoholic beverages and footwear and clothing were the only two sub-categories in which prices dropped relative to the prior month.
Inflation was 2.8% in January, marginally up from December’s 2.7% reading and within the Central Bank’s target range of 2.0%-4.0%. Core consumer prices, which exclude volatile categories such as oil, fresh fruit and vegetables, rose 0.5% in January after a flat reading in December. Core inflation dipped from 2.9% in December to 2.7% in January.
Author: Oliver Reynolds, Economist