Chile: Inflation rises in July
August 8, 2013
In July, consumer prices rose 0.3% over the previous month. The increase is below the 0.6% rise recorded in June, but in line with market expectations. According to the statistical institute, the result was mainly due to higher prices for transport and utilities.
Annual headline inflation increased from 1.9% in June to 2.2% in July and has now reached its highest level since October 2012. Inflation is back within the 3.0% (plus/minus 1.0 percentage point) Central Bank target range.
The core inflation index, which excludes volatile categories such as oil, fresh fruit and vegetables, grew 0.1% over the previous month (June: +0.3% month-on-month). Annual core inflation remained stable at 1.3% in July.
In its June Monetary Policy Report, the Bank indicated that it sees year-end inflation at 2.6% in 2013 and at 3.0% in 2014. LatinFocus Consensus Forecast panellists expect inflation to close the year at 2.8%, which is down 0.2 percentage points from last month's forecast. For 2014, inflation is expected to increase at 3.0%.