Chile: Inflation picks up pace in June
July 6, 2018
Consumer prices rose 0.1% in June, edging down from the previous month’s reading (May: +0.3% month-on-month) and coming in marginally below market expectations of a more moderate 0.2% increase. According to the National Statistical Institute (INE), the increase was driven by higher prices for transport, housing and utilities, and food and beverages.
Inflation rose for a third consecutive month in June, coming in at 2.5% (May 2.0%) and marking a 13-month high. As a result, inflation moved closer to the mid-point of the Central Bank’s 2.0%–4.0% tolerance range. In addition, average inflation over the last 12 months ticked up from 1.9% in May to 2.0% in June.
After removing volatile categories such as fruit, vegetables and fuel, core consumer prices remained flat in June, down from the previous month’s 0.2% increase. Meanwhile, core inflation stood at 1.9%, up from May’s 1.7% print.
Chile Inflation Forecast
The Central Bank predicts year-end inflation of 2.3% in 2018 and 3.0% in 2019. FocusEconomics Consensus Forecast panelists expect inflation to end 2018 at 2.8%, which is up 0.1 percentage points from last month’s forecast. The panelists see inflation ending 2019 at 3.0%.
Author: Almanas Stanapedis, Economist