Chile: Inflation drops to lowest level since November 2024 in April
Latest reading: Inflation came in at 4.5% in April, down from March’s 4.9%. April’s figure represented the weakest inflation rate since November 2024 but was still above the Central Bank’s 2.0–4.0% target range. The slowdown was largely due to softer growth in prices for food and non-alcoholic beverages. In addition, price pressures for housing, utilities and fuel softened.
The trend was unchanged, with annual average inflation coming in at March’s 4.5% in April. Meanwhile, core inflation ticked up to 3.7% in April from the previous month’s 3.6%.
Finally, consumer prices rose 0.19% in April over the previous month, a smaller increase than the 0.50% rise logged in March. April’s result marked the weakest reading since December 2024 and was below market expectations.
Panelist insight: On the inflation data, Itaú Unibanco analysts said:
“The downward surprise in April follows several months of data aligning with market projections. Beyond this one-off surprise, the recent dynamics suggest that fears of further inflationary persistence, due to potential second-round effects and other factors, appear to be easing.”