Chile: Inflation decelerates in July below the Central Bank's target
August 8, 2011
In July, consumer prices rose 0.1% over the previous month, which was below the 0.2% price rise recorded in June, but matched market analysts' expectations. The monthly increase mainly reflected higher prices for healthcare as well as for housing, which were partially offset by lower prices for recreation and culture. As a result of the subdued price increase, annual headline inflation dropped from 3.4% in June to 2.9% in July, below the Central Bank's target of 3.0%. The core inflation index, which excludes volatile categories such as oil, fresh fruits and vegetables, inched 0.2% higher over the previous month. Despite the increase, annual core inflation fell from 2.4% in June to 2.0% in July. In its last quarterly inflation report from June, the Bank lowered its year-end inflation expectation from 4.3% to 4.0%, before moderating to 3.0% by the end of 2012.