Consumer prices in Chile fell a surprising 0.2% in Junewhich paves the way for the eventual initiation of a process of cuts in the Central Bank’s reference interest rate.
(See: The country that will give money to millions of its citizens due to inflation).
He state National Institute of Estacouplets (INE) said on Friday that inflation accumulated a rise of 7.6% in the 12 months to June, less than the 8.7% of the previous month, but that it still remains above the range of tolerance of the Central Bank of between 2 and 4%.
“In the sixth month of the year, seven of the twelve divisions that make up the CPI basket contributed negative incidences in the monthly variation of the index, four presented positive incidences and one registered zero incidence”, said the INE.
Among the divisions with decreases in their prices, clothing and footwear (-2.4%) and transportation (-0.4%) stood out. “Going forward, we expect inflation to continue to moderate. Among the main factors are the adjustment of internal spending, the appreciation of the peso and the moderation of external prices. said Investment Security.
(See: The possibility of a new rise in interest rates was left open).
He The Central Bank has maintained the referential interest rate at the technical maximum of 11.25% to contain the strong inflationary pressure that caused the rapid recovery of activity after the COVID-19 pandemic.
However, if the recent improvement in the indicators continues, the agency has said that it would soon begin a process of cutting the key rate.
The chief economist of Scotiabank Chile, Jorge Selaivesaid “lowering the interest rate by 100 basis points is fully included as an alternative in the next issuer meeting”.
(See: Why the Fed will continue to raise interest rates, according to minutes).
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