MercoPress. South Atlantic News Agency

Chilean retail prices increased 0.4% in June.

Retail prices in Chile last June increased 0.4%, reaching 1.6% in the first six months of 2004 and 1.1% in the last twelve months, according to the latest report from the country's Statistics Institute.

Sectors with the greatest increase in June include Transport 1.5%; Housing 0.8% and Food, 0.2%, while Clothing recorded -0.2%, and Health, Education and Leisure remained unchanged. However the June index is above analysts' forecasts which estimated a maximum 0.3%, given the reduction in fuel prices.

In the first half of 2004, gasoline and cooking gas experienced the greatest increase and in the last twelve months, gasoline and drinking water.

At the other end, in the first six months of 2004, and in the last twelve months, electricity and financial services experienced the greatest price contraction.

The retail price index for transable goods, (those with international competition) increased 0.3% last June; the non transable 0.6%.

In related news the Chilean Central Bank reported that the economy expanded at an annual rate of 4.8% during May. But analysts were a bit surprised since they were expecting a number closer to 6%.

Last April the annualized index was 5%, and in March 6.3%.