Chile: Inflation rises in November
December 6, 2013
In November, consumer prices rose 0.4% over the previous month. The figure overshot both the 0.1% increase recorded in October and the market's expectation that the index would remain at 0.1%. According to the statistical institute, the monthly increase reflects higher prices for food, non-alcoholic beverages, and gas, electricity and water.
Annual headline inflation rose from 1.5% in October to 2.4% in November. As a result, inflation is within the Central Bank's target range of 3.0% plus/minus 1.0 percentage point. The core inflation index, which excludes volatile categories such as oil, fresh fruit and vegetables, inched down from 0.3% in October to 0.2% in November. Annual core inflation rose to 2.2%, up from the 1.8% increase recorded in October.
In its December Monetary Policy Report, the Bank indicated that it sees year-end inflation at 2.6% in 2013 and at 2.5% in 2014. LatinFocus Consensus Forecast panelists 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 to 3.0%, which is unchanged from last month's estimate.
Author: Dirina Mançellari, Senior Economist