Archive

Chile CPI inflation -0.15% m-o-m in Jun-23

- Chile's CPI inflation declined by -0.15% month-on-month in June 2023, reaching its lowest point since December 2018.
- The current inflation rate is 0.76 percentage points below the one-year average and 0.59 percentage points below the long-run average, indicating a notable deviation from the usual trend.

Chile economic activity growth -2.01% y-o-y in May-23

- Chile's economic activity growth in May 2023 experienced a steep decline of -2.01% year-on-year, marking the lowest growth rate since December 2022.
- The current growth rate is 1.38 percentage points below the one-year average and 5.63 percentage points below the long-run average, indicating a troubling deceleration in economic activity in Chile.

Chile unemployment rate 8.52% in May-23

- Chile's unemployment rate in May-23 was 8.52%, the lowest since Feb-23, indicating a gradual improvement in the labor market.
- Despite the improvement, the current unemployment rate remains above the one-year and long-run averages, suggesting lingering challenges that need to be addressed for a sustainable recovery.

Banco Central Chile: Jun-23

• The Central Bank of Chile maintained the monetary policy interest rate at 11.25%, reflecting a balance between managing inflation and promoting economic growth amidst global and domestic uncertainties.
• A cautious yet anticipatory mood pervades the Chilean financial market, with a fall in short-term rates indicating expectations of a softer contractionary monetary policy stance.
• Despite the declining inflation trend, persistent inflationary risks and a possible future reduction of the MPR add a layer of complexity to future monetary policy decisions.