Chile’s annual inflation reached its lowest level in a year and a half in June, supporting views that the central bank will soon start cutting interest rates.
Chile’s 12-month inflation was 7.6% in June, down from 8.7% in the previous month and the lowest since December 2021, data from statistics agency INE showed.
Inflation in the world’s largest copper producer remains above the central bank’s target range of 2% to 4% but has slowed sharply from the three-decade highs reported in 2022.
The Chilean central bank acknowledged in June that it may start a monetary easing cycle in the short term if the positive trend in consumer prices continues, expecting inflation to approach its target level by late 2024.
Bank policy makers will announce their next interest rate decision on July 28.
Chile’s economy went through a rapid recovery after the Corona pandemic, which led to high inflation and the subsequent strong monetary tightening, as benchmark interest rates are currently at a session high of 11.25%.
In June alone, consumer prices in the country fell by 0.2%, according to the National Institute of Statistics.
