Chile’s consumer price index (CPI) rose by 0.4% in July, driven by increases in prices for food and non-alcoholic beverages, among others, according to the state-owned National Statistics Institute (INE).
The rise is more than expected, yet it leads to inflation totaling 6.5% in the year to July, above the Central Bank’s annual tolerance range of 2% to 4%.
Six of the eleven categories that comprise the IPC basket have a positive influence on the index’s monthly variance, five have a negative impact, and one has no impact.
In addition to food and non-alcoholic beverages, as the month progresses, the recreation and culture sectors also influence, as do alcoholic beverages and tobacco.
The divisions that showed lower prices, without embargo, were clothing and footwear, equipment, and home maintenance.
“Inflation is at half the level of what it was a year ago.” The CPI in 12 months is the lowest since the last 20 months. “Everything indicates that the inflation projections of around 4% at the end of the year will be fulfilled,” Chile’s Minister of Finance, Mario Marcel, said.
Surprisingly, prices dropped by 0.2% in June, which is what we set out to do to start the expected rate reduction cycle.
