Chile: Inflation ends year within Central Bank's target
January 8, 2014
In December, consumer prices rose 0.6% over the previous month. The figure overshot both the 0.5% increase the markets had expected and the 0.4% rise recorded in the previous month. According to the statistical institute, the monthly increase reflects higher prices for water, electricity and gas, as well as for transportation.
Annual headline inflation rose from 2.4% in November to 3.0% in December. As a result, inflation remains within the Central Bank's target range of 3.0% plus/minus 1.0 percentage point. The core inflation index, which excludes volatile categories such as oil, fresh fruit and vegetables, edged up from 0.2% in November to 0.5% in December. Annual core inflation rose to 2.4%, which was up from the 2.2% increase recorded in the previous month.
The Bank sees 2014 year-end inflation at 2.5%. LatinFocus Consensus Forecast panelists expect inflation to close 2014 at 2.8%, which is down 0.1 percentage points from last month's forecast. For 2015, inflation is expected to increase to 2.9%.
Author: Dirina Mançellari, Senior Economist