Chile: Inflation moderates in May
June 11, 2012
In May, consumer prices were flat over the previous month, which followed a 0.1% increase recorded in April and undershot market expectations of a 0.2% rise. The monthly reading mainly reflected higher prices for housing and utilities, which were completely offset by lower food and transport prices. As a result of the subdued reading, annual headline inflation fell from 3.5% in April to 3.1% in May, only an inch above the Central Bank's target of 3.0%. The core inflation index, which excludes volatile categories such as oil, fresh fruit and vegetables, added 0.3% over the previous month, prompting annual core inflation to inch up from 2.6% in April to 2.7% in May. In its March Monetary Policy Report, the Central Bank expects inflation to end the year at 3.5%. For 2013, the Bank expects inflation to end the year at 3.0%.