Global| Jun 03 2005Chilean Inflation Eases in May After Energy-Driven Surge in April
Summary
Consumer prices in Chile slowed last month after a strong rise in April. The total CPI was up 0.4% (seasonally adjusted by Haver) following 0.7%. This helped the 12-month inflation rate ease to 2.7% from 2.9%. Energy prices were [...]
Consumer prices in Chile slowed last month after a strong rise in April. The total CPI was up 0.4% (seasonally adjusted by Haver) following 0.7%. This helped the 12-month inflation rate ease to 2.7% from 2.9%. Energy prices were evidently the main mover in both the April surge and the May moderation; transportation prices had risen a mere 0.2% in March, but leaped 2.2% in April and were still strong but less so in May with a 1.3% rise.
Chilean inflation generally remains well under control. Excluding food and energy, the CPI was up 2.4% over May 2004. This is a higher rate than what prevailed over the previous three years by about 0.7 percentage point. But the firming has come mainly from reduced rates of deflation in clothing prices and home furnishings, not from a measurable reacceleration of some sector; indeed, housing costs, health care and education are basically trendless near the overall inflation rate.
Inflation in Chile also remains notable relative to its neighbors. Argentina still struggles with more than 8% and Brazil with about 7%. Among South American countries, only Ecuador and Peru have slower inflation than Chile. For Ecuador, the slower pace is new just in the last three or four years. Peru's inflation has been a bit lower than Chile's since early 2001, but Peru was experiencing much more dramatic rates until well into the mid-1990s.
| May 2005 | Apr 2005 | Mar 2005 | Year/ Year | December/December||||
|---|---|---|---|---|---|---|---|
| 2004 | 2003 | 2002 | |||||
| Total CPI | 0.4 | 0.7 | 0.3 | 2.7 | 2.4 | 1.1 | 2.8 |
| ex Food & Energy | 0.5 | 0.3 | 0.1 | 2.4 | 1.8 | 1.6 | 1.8 |
| Food | 0.2 | 0.2 | 0.2 | 1.8 | 0.2 | -0.8 | 3.5 |
| Transportation | 1.3 | 2.2 | 0.2 | 6.7 | 9.1 | 0.3 | 3.5 |
Carol Stone, CBE
AuthorMore in Author Profile »Carol Stone, CBE came to Haver Analytics in 2003 following more than 35 years as a financial market economist at major Wall Street financial institutions, most especially Merrill Lynch and Nomura Securities. She has broad experience in analysis and forecasting of flow-of-funds accounts, the federal budget and Federal Reserve operations. At Nomura Securites, among other duties, she developed various indicator forecasting tools and edited a daily global publication produced in London and New York for readers in Tokyo. At Haver Analytics, Carol is a member of the Research Department, aiding database managers with research and documentation efforts, as well as posting commentary on select economic reports. In addition, she conducts Ways-of-the-World, a blog on economic issues for an Episcopal-Church-affiliated website, The Geranium Farm. During her career, Carol served as an officer of the Money Marketeers and the Downtown Economists Club. She has a PhD from NYU's Stern School of Business. She lives in Brooklyn, New York, and has a weekend home on Long Island.
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