Chile: Inflation remains below target in July
August 10, 2017
Consumer prices rose 0.2% in July compared to the prior month, contrasting June’s 0.4% drop and coming in slightly above analysts’ expectations. According to the National Statistical Institute (INE), July’s increase was underpinned by higher prices for food and non-alcoholic beverages, housing and health services.
Inflation came in at 1.7% in July, mirroring June’s figure. As a result, inflation remains outside the Central Bank’s 2.0%-4.0% tolerance range, giving further weight to the voices of those calling for greater monetary easing going forward in order to tug inflation back to target. After stripping out volatile categories such as oil, fresh fruit and vegetables, core consumer prices rose 0.4% in July, contrasting June’s 0.2% drop, while core inflation was 2.0% in July, matching June’s figure.
Author: Oliver Reynolds, Economist