Chile: Inflation remains within Central Bank target range
August 8, 2012
In July, consumer prices were flat over the previous month, which followed the 0.3% drop registered in June and matched market expectations. According to the press release, lower prices for footwear and clothing as well as for utilities offset higher prices for food and alcoholic beverages. As a result, annual headline inflation declined from 2.7% in June to 2.5% in July, which represents the lowest level since November 2010. Annual inflation remains within the Central Bank's target of 3.0% with plus/minus 1.0% tolerance margin. The core inflation index, which excludes volatile categories such as oil, fresh fruit and vegetables, rose 0.1% over the previous month following June's flat reading. Annual core inflation inched down to 2.4% in July from 2.5% in June. The Bank expects inflation to end this year at 2.7%. For 2013, monetary officials forecast inflation closing the year at 3.0%.