MercoPress. South Atlantic News Agency

Chile's inflation seems to have peaked and begins to yield

Chile's August Consumer Prices Index, CPI, increased 0.9% accumulating 6.5% in the first eight months of the year and 9.3% in the last twelve months (down from 9.5% in July/June), according to the latest release from the National Statistics Institute, INE.

Among the most sensitive items, fuel increased 3.8% totaling 17.6% in the last twelve months while fresh vegetables and fruit dropped 1.4%, accumulating 9% in twelve months. Housing in August jumped 1.4%, with sub sectors Basic Services and Communications up 2.7% and 3.8% respectively. Finance minister Andres Velasco said that August hopefully has become the inflection point in a long creeping inflationary process. "Inflation for the last twelve months had been growing month after month since April 2007, but what have we seen in August, accumulated inflation has begun to drop slightly", said Velasco. "Curbing inflation is not an easy task, but there's a change in the tendency. But we must not be complacent, we must keep working", added Velasco. "We are benefiting from abundant rainfall, lower oil prices and investments which are zooming", underlined Velasco. Chilean inflation in the first eight months has been as follows: January 0%; February 0.4%; March 0.8%; April, 0.4%; May 1.2%; June, 1.5%; July, 1.1% and 0.9%.