Chile: Inflation rises in March but remains well below Central Bank's target
April 8, 2013
In March, consumer prices added 0.4% over the previous month, which followed the 0.1% increase registered in February and came in above market expectations of a 0.3% increase. According to the statistical institute, the rise was mainly due to higher prices for education and for food and non alcoholic beverages.
As a result, annual headline inflation increased from 1.3% in February to 1.5% in March. At the current level, inflation remains below the Central Bank's target of 3.0% with a plus/minus 1.0 percentage point tolerance margin.
Meanwhile, the core inflation index, which excludes volatile categories such as oil, fresh fruit and vegetables, rose 0.2% over the previous month. Annual core inflation rose from 1.0% in February to 1.3% in March.
In the latest Monetary Policy Report from March 2013, the Bank sees year-end inflation at 2.8% in 2013 and 3.0% in 2014. LatinFocus Consensus Forecast panellists expect inflation to close the year at 3.0%, which is down 0.1 percentage points from last month's forecast. For 2014, inflation is expected to remain stable at 3.0%.