Chile: Inflation slips below the Central Bank's tolerance range
February 8, 2019
According to the National Statistical Institute (INE), consumer prices ticked up 0.1% month-on-month in January, after edging down 0.1% in December. The monthly increase reflected higher prices for alcoholic beverages and tobacco, as well as for housing and basic services.
Inflation came in at 1.8% in January, below the Central Bank’s 2.0%–4.0% tolerance range (December: +2.6%). Meanwhile, average inflation over the last 12 months was unchanged at 2.4% in January.
After removing volatile categories such as fruit, vegetables and fuel, core consumer prices rose 0.4% month-on-month in January, after increasing 0.2% in the month prior.
The Central Bank projects year-end inflation of 2.8% in 2019 and of 3.0% in 2020.
Chile Inflation Forecast
FocusEconomics Consensus Forecast panelists expect inflation to end 2019 at 2.9%, which is down 0.1 percentage points from last month’s forecast. The panel sees inflation ending 2020 at 3.0% as well.
Author: Nicolás J. Aguilar, Economist