Chile Inflation October 2018


Chile: Inflation slips below the Central Bank's target in October

November 8, 2018

Consumer prices rose 0.4% from the previous month in October, up slightly from September’s 0.3% increase. According to the National Statistical Institute (INE), the increase was primarily driven by higher prices for transport services, alcoholic beverages and tobacco, and food.

Inflation moderated to 2.9% in October (September: 3.1%), falling just below the mid-point of the Central Bank’s 2.0%–4.0% tolerance range. The result was in line with the expectations of market analysts and came on the heels of the first policy rate hike in nearly three years in mid-October. Meanwhile, average inflation over the last 12 months ticked up to 2.3% in October (September: 2.2%).

After removing volatile categories such as fruit, vegetables and fuel, core consumer prices increased 0.1% month-on-month in October, unchanged from September’s reading. Meanwhile, core inflation decelerated to 1.9% in October (September: 2.3%).

The Central Bank predicts year-end inflation of 3.0% in both 2019 and 2020. FocusEconomics Consensus Forecast panelists expect inflation to end 2019 at 3.1%, which is unchanged from last month’s forecast, before decelerating slightly to end 2020 at 2.9%.

Author:, Research Team Manager

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Chile Inflation Chart

Chile Inflation October 2018 0

Note: Year-on-year and monthly variation of consumer price index in %.
Source: Chile National Statistical Institute (INE).

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