Consumer price inflation in Chile accelerated for the third straight month in October, data released by the National Institute of Statistics showed Tuesday.
The annual inflation rate increased to 3.7% in October from 3.3% in September. In August and July, the inflation rates were 3.2% and 2.9%.
Food and non-alcoholic beverages prices climbed 6.5% year-on-year, while prices in the transport sector moved up 4.8%. There was a 5.6% annual growth in housing costs and utility prices, and a 5.4% decrease in clothing and footwear prices in October.
On a monthly basis, the consumer price index increased 0.5% in October, matching the rate of growth for the previous month. In the January-October period, consumer prices advanced 3.5% compared to the same period last year.
In related news Chile’s central bank will continue to buy 50 million dollars a day over the next month to build international reserves, according to data published on its website Tuesday.
The bank plans to sell 690 million of inflation-linked bonds and 263 million of fixed-rate bonds in pesos over the next month. The biggest maturity will be 222 million of five- year inflation bonds in three auctions.
The bank will also auction 339 million of inflation-linked government bonds and 152 million of government bonds in pesos, it wrote.
Chile’s economy grew a faster-than- forecast 5.7% in September from a year earlier, damping speculation of a cut in interest rates as the European debt crisis has a limited impact on domestic demand.
Month-on-month, output expanded 0.9% on a seasonally adjusted basis, the central bank said in a statement on its website. The economy grew 4.8% in the third quarter, according to calculations based on bank data.
Growth in September reflects increases in the retail and fishing industries, the bank said, without giving details.