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Chile CPI Inflation -0.5% m-o-m (consensus -0.1%) in Dec-23

- Chile's CPI inflation rate experienced a significant decline of 0.5% on a month-on-month basis in December 2023, far below the market consensus of -0.1%.
- The current rate is notably below average and led by core weakness, indicating excessive disinflationary pressure that supports ongoing policy loosening.

Chile Policy Interest Rate 8.25% (consensus 8.5%) in Dec-23

• The Central Bank of Chile unexpectedly cut the MPR by 75 basis points to 8.25%, influenced by improved global financial conditions and a downward trajectory in inflation, both domestically and in key economies like the U.S.
• Domestically, slight GDP growth, sluggish labour market performance, and continued pessimistic sentiments among households and firms have shaped the decision, with inflation rates showing a consistent decrease.
• Future policy decisions will likely involve further MPR cuts, guided by the evolving macroeconomic scenario and inflation trends, with a commitment to flexibility in response to any emerging internal or external risks.

Chile CPI Inflation 0.7% m-o-m (consensus 0.2%) in Nov-23

- Chile's CPI inflation in November 2023 surpassed market expectations and recorded the highest growth since March 2023.
- The current reading exceeded the one-year average by 0.32 percentage points, indicating a worrying upward trend in inflationary pressures.

Chile Economic Activity Growth 0.3% y-o-y (consensus 0.4%) in Oct-23

- Chile's economic activity grew by 0.3% y-o-y in October 2023, slightly below expectations of 0.4%, but marking the highest growth since July 2023.
- While the growth is above the one-year average by 1.12 pp, it remains significantly below the long-run average by 4.78 pp, indicating the ongoing challenges in achieving sustained economic expansion.