Chile: Inflation slides within Central Bank's target range
April 5, 2012
In March, consumer prices rose 0.2% over the previous month, which was below both the 0.4% increase recorded in February and market analysts' expectations, which had prices increasing by 0.5%. The monthly reading mainly reflected higher prices for education as well as for food and non-alcoholic beverages, which were partially offset by lower transport prices. Annual headline inflation fell from 4.4% in February to 3.8% in March, within the Central Bank's target of 3.0% (with a 1.0% tolerance margin). The core inflation index, which excludes volatile categories such as oil, fresh fruit and vegetables, was flat over the previous month. Annual core inflation edged down from 3.5% in February to 3.1% in March. According to its March Monetary Policy Report, the Central Bank expects inflation to end the year at 3.5%, above the previous 2.7%. For 2013, the Banks expects inflation to end the year at 3.0%.