Chile: Inflation speeds up in May
June 7, 2019
Consumer prices rose 0.6% month-on-month in May (April: 0.3%), the fastest monthly increase in almost two years. According to Chile’s Statistical Institute (INE), May’s print largely reflected higher prices for housing, and recreation and culture. Meanwhile, core consumer prices rose 0.4% month-on-month (April: 0.1%).
Inflation came in at 2.3% in May, accelerating from April’s 2.0% result, thus rising closer to the midpoint of the Central Bank’s 2.0%–4.0% target rate. In addition, core inflation edged up to 2.0% (April: 1.9%).
Annual average inflation clocked in at 2.4%, unchanged from April’s result.
The Central Bank projects year-end inflation of 2.6% in 2019 and of 3.0% in 2020.
Chile Inflation Forecast
FocusEconomics Consensus Forecast panelists expect inflation to end 2019 at 2.7%, which is unchanged from last month’s forecast. The panel sees inflation ending 2020 at 2.9%.
Author: Nicolás J. Aguilar, Economist