Chile Inflation Slows Past All Estimates With Interest Rate Cuts on the Horizon
- Consumer prices rose 0.1% on month, 8.7% on year in May
- Investors are bringing forward bets on monetary easing cycle
This article is for subscribers only.
Chile’s annual inflation slowed more than forecast in May on falling transportation costs, stoking bets that the central bank will lower its interest rate from an over two-decade high as soon as next month.
Consumer prices increased 8.7% from a year prior, less than the 8.9% median forecast of analysts in a Bloomberg survey. Monthly inflation stood at 0.1%, the national statistics institute reported on Thursday. A closely-watched price gauge that excludes volatile items rose 9.9% in 12 months and 0.5% from April. Chile’s central bank targets inflation of 3%.