Chile: Inflation reaches a 23-month high in March
April 8, 2014
In March, consumer prices rose 0.8% over the previous month. The increase came in above the 0.5% rise tallied in February and slightly overshot the 0.7% increase the market had expected. According to the statistical institute, the monthly increase mainly reflected higher prices for food and non-alcoholic beverages as well as for transportation. Annual headline inflation increased from 3.2% in February to 3.5% in March, which marked the highest rate since April 2012. However, inflation remains within the Central Bank's target range of 3.0% plus/minus 1.0 percentage points. The core inflation index, which excludes volatile categories such as oil, fresh fruit and vegetables, rose a month-on-month from 0.4% rise in February to 0.7% increase in March. Annual core inflation increased from 2.7% in February to 2.9% in March. The Central 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, the panel sees inflation inching up to 2.9%.
Author: Dirina Mançellari, Senior Economist