Chile inflation cools to 0.5% in November as money taps tightened

Chile's consumer prices rose 0.5% in November, a smaller increase than in October as the South American country tries to tame inflation that has been overshooting a target range amid a faster-than-expected economic recovery. Inflation in October had been 1.3%. The National Institute of Statistics said that inflation registered a 12-month rise of 6.7%, well above the central bank's tolerance range of between 2.0%-4.0%.

Chile's consumer prices rose 0.5% in November, a smaller increase than in October as the South American country tries to tame inflation that has been overshooting a target range amid a faster-than-expected economic recovery. The rise, announced by Chile's official statistics agency on Tuesday, was just ahead of analysts' forecasts for a 0.45% increase for November. Inflation in October had been 1.3%.

The National Institute of Statistics said that inflation registered a 12-month rise of 6.7%, well above the central bank's tolerance range of between 2.0%-4.0%. Chile, like other countries around the region, is struggling to bring down spiraling prices, which have risen in response to government stimulus efforts to help the economy recover from the impact of the coronavirus pandemic.

Inflation, economists say, has also been fanned by three partial withdrawals of savings from pension funds approved by Congress. A fourth withdrawal was recently rejected. Chile's central bank has been going through a cycle of tightening monetary policy with a series of interest rate hikes this year.

 

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