MercoPress. South Atlantic News Agency
Chile's inflation picks up in June, despite persistent weak economic growth
Central bank data showed on Monday that Chile's economic activity rose 0.8% in May from a year earlier, much slower than expected Chile's inflation picked up and beat expectations in June despite persistently weak economic growth. The consumer price index rose 0.5% in June, as prices for transportation, housing and basic services increased, the government's stats agency said on Wednesday.
Inflation in the 12 months to June was 4.4%, above the central bank's 2% to 4% target range. Core inflation was 0.5% in June.
Central bank data showed on Monday that Chile's economic activity rose 0.8% in May from a year earlier, much slower than expected. This raises questions about the pace of economic recovery in the top copper exporter.
That same day, Chile's government cut its forecast for 2015 economic growth to 2.5% from 3.6% as the economy has taken longer than expected to rebound.
This week, Chile's peso weakened to a nearly 6-1/2 year low against the U.S. dollar.
Traders polled by the central bank have scaled back their expectations for a rate hike and now see the benchmark interest rate on hold at 3.0% through at least July 2016.
Despite weak economic growth, the surprise jump in inflation will likely prompt the bank to maintain its current stance on interest rates, said Corp-Research in a note to clients.
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Read all commentsMomi Bachelete and her socialist economic policies are like a rock around our necks. She means well, but she's doing the worst thing possible just at the moment that our biggest market, China, is in crisis.
Jul 09th, 2015 - 07:21 am 0@1 Chicureo
Jul 09th, 2015 - 04:16 pm 0Just waiting for the inevitable parade of Argy Trolls, whining that this economic data is proof of the inevitable, imminent collapse of civilisation west of the Andes.
After all this sort of thing doesn’t happen in the Bolivarian, Peronist, Utopia of Argentina.
I mean when was the last time they had inflation that low and growth that high, eh?
@1..she means well? Bottom falling out from under the peso like I said half a year ago. Did she and her mother and son know about it? Yes. Did margot honecker? yes. When communism acts like its something that it's not. That's called 2006-2010. This regime cares 0 about those who save in pesos. Greedy capitalists. Like greece...a marxist regime that lies about economic reality.
Jul 16th, 2015 - 10:58 pm 0Commenting for this story is now closed.
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