MercoPress. South Atlantic News Agency

Chile's June inflation jumps 0.6%; 3.9% in 12 months

Gasoline, public transport and liquid gas helped push the Chilean Consumer Prices Index for the month of June to an unexpected 0.6%, according to the country's Statistics Office.

This means accumulated inflation in the first six months of 2006 reached 2.1% and for the last twelve months 3.9%. The June index was the highest monthly increase since June 1996 and the first half inflation, the strongest since the first half of 2000 with 2.4%.

The rise in Public transport represented a third of the June index, with Food, particularly fresh produce, poultry, beef and wheat, also having a significant influence.

Meantime the Producer Prices Index soared 4.1% in June with a 12.4% increase in the first six months of 2006 and 20.3% in the last twelve months.

As to incomes, the nominal increase last May was 0.3% accumulating 1.9% in the first five months of the year and 5.5% in the last twelve months. The average individual income in Chile during May was equivalent to 584 US dollars.

Analysts forecast that the June index, although inflation remains in the targeted range, will have an immediate influence on the Chilean Central Bank monetary and rates policy.