MercoPress. South Atlantic News Agency

Inflation in Chile under control.

Consumer prices during October in Chile advanced 0,3% totalling so far this year 2,6% and 1,9% in the last twelve months.

According to the Chilean Statistics Office fresh fruit and vegetables, plus fuel had the biggest impact in October's index which increased of 3,1% and 2,9% respectively.

In the last twelve months fuel has increased 20,3% with transport reflecting the main jump last October, 1,6% and 7,5% in the last twelve months.

Other items such as Housing, Health and Others experienced a slight contraction, Clothing and Footwear remained unchanged while Education and Household equipment and maintenance increased 0,1%.

However wholesale prices during October increased 1,7%, an 11,9% in the first ten months of 2004 and 8,9% in the last twelve months.

National produced goods prices advanced an average 2,3% and imported goods 0,1%.

Among domestic production fisheries prices outstand with an increase of 10,7% and among imported, minerals (mainly oil) with a 12,2% jump.

At production level prices during October rose 0,3%; in the first ten months of 2004, 15,6% and in the last twelve months, 14,9%.

For domestic manufactured goods the price rise in October was 0,4%.

Thursday the Chilean Central Bank left the basic interest rate unchanged at 2% in spite of higher oil prices and the strengthening of the economy and domestic demand.

The unanimous decision of the bank's governors was that even with potential adverse effects because of the international oil price surge, inflation remains under control at low levels.

Some Santiago financial analysts went even further and estimated that the Chilean Central Bank won't raise interest rates until the beginning of 2005 because the October inflation index was below the expected 0,4%.