Chile: Inflation accelerates on food and transport prices
October 6, 2012
In September, consumer prices rose 0.8% over the previous month, which was well above the 0.2% increase registered in August and exceeded market expectations of a 0.6% increase. According to the statistical institute's press release, higher prices for food and non-alcoholic beverages as well as for transport drove the monthly increase. As a result, annual headline inflation rose from 2.6% in August to 2.8% in September, which remains within the Central Bank's target of 3.0% with a plus/minus 1.0 percentage points tolerance margin. Meanwhile, the core inflation index, which excludes volatile categories such as oil, fresh fruit and vegetables, added 0.5% over the previous month, contrasting August's 0.2% drop. Annual core inflation followed suit and rose from 2.0% in August to 2.2% in September. In the latest Monetary Policy Report from September, the Bank sees year-end inflation at 2.5%. For 2013, monetary officials expect inflation to end the year at 3.0%.