Chile: Inflation falls to joint-lowest level since April in September
Latest reading: Inflation came in at 4.1% in September, which was down from August’s 4.7% but still marginally above the Central Bank’s 2.0–4.0% target range. September’s reading marked the joint-lowest inflation rate since April. The slowdown was largely driven by softer growth in prices for food and non-alcoholic beverages, plus housing, utilities and fuel.
Annual average inflation fell to 4.3% in September (August: 4.4%). Meanwhile, core inflation rose to 3.7% in September from August’s 3.6%.
Finally, consumer prices increased 0.09% in September over the previous month, below the 0.25% rise seen in August. September’s result marked the weakest reading since June and was below market expectations.
Panelist insight: On the outlook, Itaú Unibanco analysts said:
“Anchored inflation expectations, and the lagged effect of a still-contractionary monetary policy will support the disinflation process. We see inflation of 4.5% this year, as upside electricity risks and past CLP depreciation pressures are offset by widespread retail sales events. We expect inflation to fall to 3.3% next year. Nevertheless, geopolitical developments in the Middle East that keep global oil prices elevated, disrupt supply-chains and pressure the CLP, pose risks towards a slower disinflation process.”