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Chile CPI inflation 0.11% m-o-m in Aug-23

- Chile's CPI inflation grew by just 0.11% m-o-m in August 2023, the lowest rate since June 2023.
- The inflation growth in Chile is significantly below historical averages, lagging behind the one-year average by 0.32 percentage points and the long-run average by 0.33 percentage points.

Chile economic activity growth -0.97% y-o-y in Jun-23

- Chile's economic activity in June 2023 improved slightly with a year-on-year growth rate of -0.97%, which is the highest since February 2023.
- However, this growth rate remains 4.58 percentage points below the long-run average, indicating that the country's economy is still below its historical trends.

Banco Central Chile: Jul-23

• The Central Bank of Chile executed a larger-than-anticipated 100 basis points cut to the monetary policy interest rate, driven by factors such as declining international and domestic inflation, and changing commodity prices.
• Domestic financial markets are responding to expectations of eased monetary policy with falling short-term interest rates and a depreciating exchange rate, despite weak bank credit and stable long-term rates.
• Future decisions regarding the reduction of the MPR will be carefully based on the evolution of the macroeconomic scenario and its implications for the trajectory of inflation.

Chile unemployment rate 8.53% (consensus 8.6) in Jun-23

- Chile's unemployment rate for June 2023 stood at 8.53%, slightly lower than the consensus estimate of 8.6%, indicating a modest improvement in the labor market.
- However, the unemployment rate remains elevated, standing 0.31% above the one-year average and 1.05% above the long-run average, highlighting underlying structural issues in the economy.