Chile: Inflation eases in April
May 6, 2011
In April, consumer prices rose 0.3% over the previous month, which was well below the 0.8% price rise recorded in March, and slightly below market analyst expectations of a 0.4% increase. The monthly reading mainly reflected an increase in prices for food and non-alcoholic beverages as well as for transportation. As a result of the subdued price increase, annual headline inflation eased from 3.4% in March to 3.2% in April. The core inflation index, which excludes volatile categories such as oil, fresh fruits and vegetables, rose also 0.3% over the previous month. As a result, annual core inflation remained unchanged at March's 2.4%. The Central Bank has a medium-term inflation target of 3.0%, with a 1% tolerance margin. However, on 4 April, the Bank sharply raised its inflation forecast for this year to 4.3% from the previous 3.3%, although it maintained its 3.0% forecast for the end of 2012.