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Chile CPI Inflation 0.7% m-o-m (consensus 0.6%) in Sep-23

- Chile's CPI inflation rose by 0.7% month-on-month in September 2023, the highest growth seen since March 2023 and a tenth above the consensus expectation.
- This increase of 0.29 percentage points above the one-year average suggests a notable deviation from recent trends and historical norms.

Chile Economic Activity Growth -0.9% y-o-y (consensus 0.1%) in Aug-23

- Chile's economic activity growth declined by 0.9% year-on-year in August 2023, marking the lowest growth rate since June 2023, contrary to consensus expectations for 0.1% y-o-y growth.

Chile unemployment rate 9.0% in Aug-23

- The unemployment rate in Chile reached 9.0% in August 2023, the highest level since June 2021.
- The current unemployment rate is 0.62 percentage points above the one-year average and 1.50 percentage points above the long-run average, indicating ongoing challenges in the labor market.

Banco Central Chile: Sep-23

• The Central Bank of Chile's decision to cut the monetary policy rate by 75bp instead of the anticipated 100bp reflects the amalgamation of global economic uncertainties and domestic financial conditions.
• While global inflation and growth dynamics, coupled with market uncertainties, shape the external environment, domestic indicators like the depreciating peso, rising unemployment, and high inflation rates provide the local context.
• Projections indicate an alignment towards achieving a 3% inflation rate by mid-2024, but future MPR adjustments hinge on the evolving macroeconomic landscape and potential economic shocks.