Chile: Inflation stays low in March
April 7, 2017
Consumer prices in Chile rose 0.4% in March compared to the previous month, up slightly from February’s 0.2% and bang in line with analysts’ expectations. According to the National Statistical Institute (INE), March’s figure was underpinned by a broad-based rise in prices, with the food and non-alcoholic beverages, education and recreation and culture sub-categories registering the largest increases. At the same time, the prices of transport, clothing and footwear and household equipment dipped compared to the prior month.
Inflation was 2.7% in March, mirroring February’s figure and below the Central Bank’s central target of 3.0%, although still within the 2.0%-4.0% tolerance range. After stripping out volatile categories such as oil, fresh fruit and vegetables, core consumer prices rose 0.3% in March, up marginally from February’s 0.2%, while core inflation inched down from 2.3% in February to 2.2% in March, the lowest figure since October 2013.
Author: Oliver Reynolds, Economist