Chile: Inflation reaches a highest level in over two years
May 13, 2014
In April, consumer prices rose 0.6% over the previous month. The increase came in below the 0.8% rise recorded in March. 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 surged from 3.5% in March to 4.3% in April, which marked the highest rate since February 2012 and overshot market expectations of a rise to 3.9%. As a result of the increase, inflation is now above 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 0.8% (March: +0.7% month-on-month). Annual core inflation increased from 2.9% in March to 3.7% in April.
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