MercoPress. South Atlantic News Agency

Chilean inflation reaches 1,8% in six months

The Chilean consumer prices index increased 0,4% in June totalling 1,8% in 2005 and 2,7% in the last twelve months, according to the latest release from the Statistics Institute.

Food increased 0,8% pushed mainly by fresh fruits and vegetables (2,8%) and fish and sea food (1,9%), while Housing registered a 1% rise with a strong thrust from public utility rates (3%).

A new electricity regulation bill pushed June rates 7,5% and drinking water also underwent a readjustment. However this was partly compensated by a reduction in public transport prices.

Education and Leisure increased 0,1%, but Clothing, Transport, Health and Home appliances actually dropped 0,1% in June. Fuel dropped 0,2%.

Excluding fresh food and fuel, the June index was 0,4% accumulating 2,4% in 12 months.

Fresh vegetables and fruit have increased 3,3% in the last twelve months and fuel, 5,7%.

Transable goods prices (exposed to foreign competition) increased 0,1% in June while non Transable (non exposed to foreign competition, ie, education, housing) 0,7% with an accumulated 1,6% and 3,5% in the last twelve months.

Regarding wholesale prices during June, they jumped 1,4% with a 5,8% increase in the six months of 2005 and 4,1% in the last twelve months. Chilean products rose 1,5% and imported goods 1,2%.

Finally the Statistics Institute reports that the average take home for a worker last May was the equivalent of 474 US dollars, and the cost for the employer 765 US dollars.