Chile: Inflation reaches highest rate in over five years
November 7, 2014
In October, consumer prices rose 1.0% over the previous month. The print came in above the 0.8% increase tallied the previous month. According to the statistical institute, the monthly reading reflected higher prices for food and non-alcoholic beverages as well as for alcoholic beverages and tobacco.
Annual headline inflation rose from 4.9% in September to 5.7% in October, which marked the highest rate since January 2009. The figure overshot the 5.0% the market had expected. As a result, inflation remains 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 0.7% over the previous month in October (September: +0.6% month-on-month). Annual core inflation increased from September’s 4.5% to 4.9% in October, which marked the highest value since October 2009.
Author: Dirina Mançellari, Senior Economist