MercoPress. South Atlantic News Agency

Chile's September inflation 0% and 2.8% in nine months

The Chilean Consumer Prices Index in September was 0%, helped strongly by the sustained drop in fuel prices according to the latest release from the country's Statistics Institute.

This means that in the last twelve months inflation in Chile stands at 2.8% and 2.9% between January and September 2006.

Chilean Finance Minister Andres Velasco hailed the announcement saying "we have won the fight against inflation".

"Inflation is under control, the Central Bank annually sets a target and we will continue to be inside that estimate, so people can rest at ease that the government is effectively defeating inflation", he added.

According to Chile's government owned oil company ENAP, fuel prices fell consistently during the month, equivalent to a 4.2% drop and the largest since November 2005. In the last nine months fuel prices in Chile jumped 13.2% while in the last twelve months 4.4%.

Analysts were forecasting September inflation in the range of 0.1 and 0.3%, with an annual 3.5% for the whole of 2006. September's inflation rate was the lowest since February 2004.

Food prices in September rose 0.9% pushed by Fruit and Vegetables 3%; Beef and other meats and by products 2.7%; Cooking oil, butter and lard and Fish and seafood 2%.

Transport prices dropped 1.8% and Health care remained at 0%. However, Housing, Clothing, Education and Leisure experienced slight increases.

But if fuel and perishable goods such as fruit and vegetables are excluded, the retail prices index rose 0.3% in September, totaling 2.4% in the first nine months and 3.1% in the last twelve months.