Chile: Inflation recedes to over-two-year low in August
September 9, 2016
In August, consumer prices were flat over the previous month and below July’s 0.2% increase. The print fell slightly short of market expectations of a modest 0.4% increase. According to the Statistical Institute, the fact that prices were stable mainly reflected that higher prices for food, non-alcoholic beverages, clothing and footwear balanced lower prices for transport and several other categories.
Inflation fell from July’s 4.0% to 3.4% in August, which marked the lowest reading in more than two years and brought inflation closer to the center of the Central Bank’s target range of 3.0% plus/minus 1.0 percentage point. Core consumer prices, which exclude volatile categories such as oil, fresh fruit and vegetables, grew 0.1% in August over the previous month, coming in below July’s 0.4% increase. Core inflation edged down from 4.2% in July to 3.9% in August.