Chile Consumer Prices Post Biggest Monthly Drop Since 2013, Boosting Odds of Sharper Rate Cuts
- Consumer prices fell 0.5% on month, rose 3.9% on year in Dec.
- Central bank has said inflation ‘clearly’ easing to 3% target
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Chilean consumer prices unexpectedly posted their biggest monthly drop in more than a decade in December, sending swap rates tumbling and paving the way for more sharp interest rate cuts.
Prices fell 0.5% last month, more than all estimates in a Bloomberg survey that had a -0.1% median forecast. Annual inflation eased to 3.9%, the national statistics agency reported on Monday. A closely-watched price gauge that excludes volatile items increased 5.4% in the year through December.