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Montevideo, October 1st 2023 - 19:42 UTC



Chile's inflation: the highest since December 2008; Central Bank expected to further raise basic rate

Wednesday, December 8th 2021 - 09:44 UTC
Full article 2 comments
November's IPC was 0,5% and 6,7% in twelve months November's IPC was 0,5% and 6,7% in twelve months

Chile's Consumer Price Index, CPI, in November climbed 0,5%, in line with market expectations, according to a report from the Stats Office, INE, In the eleven months of the year the IPC reached 6,3% and 6,7% in the last twelve months, which is the highest since December 2008 (7,1%), and far above the Central Bank's target of 3%.

INE reported that eight of the twelve divisions of IPC showed significant increases while four were down.

Leisure and Culture increased 2,7% in November as well as clothing and footwear, while alcohol and tobacco were down 0,5%. In more specific items, tourism climbed 9,1%, and 74,1% in the last twelve months, and gasoline 3% for the eleventh consecutive month, accumulating 30,3% in twelve months.

New car prices were up 2,6% and 15,1% in twelve months; bread was up 3% in the month and 6.9% annually.

Airline tickets were down 16% in November and 50,8% in twelve months, while urban and short-distance transport decreased 7,3% and 31,7% annually.

Economy minister Lucas Palacios described the index “as good news”, which means “prices are beginning to moderate, and are significantly lower than what we have seen in past months”

Anyhow at the coming December 14 meeting, the Central Bank's Monetary Policy office is expected to continue raising the basic Monetary Policy Rate some 125 points, which could then be reaching 3,75%, in a further effort to contain inflation.


Categories: Economy, Chile.

Top Comments

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  • Marti Llazo

    The continuing devaluation of the CLP is contributing to the degree of inflation, and the weakness of the CLP is in no small part response to the increasing instability perceived in the country, which has grown since pro-Marxist/anarchist destruction there since Red October of 2019. If it's another Venezuela they want, another Venezuela is what they are trying to get.

    Dec 08th, 2021 - 03:26 pm 0
  • FortHay

    What a disaster ! Chile was the very best of Latin America. After living and working there, I used to tell people it was a lot like California, but with one major benefit: Virtually no Californians. :-) I wish Chilenos well and hope things turn around.

    Dec 08th, 2021 - 03:49 pm 0
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