The president of the Central Bank of Chile, Rosanna Costa, announced the projection of the country’s year-on-year inflation, which could remain at 5 % until June.

According to the executive of the regulatory body, this projection is based on “the simultaneous occurrence of cost shocks that, in line with narrow company margins, leads to assuming a greater transfer to prices than previously estimated.”

Costa also indicated that inflation convergence in Chile will occur at the beginning of 2026. In this sense, “monetary policy will continue to be guided by caution.”

The bank will continue to collect information on the development of the economy in order to evaluate “the opportunity to reduce the monetary policy rate in the coming quarters.”

The president of the Central Bank also referred to economic growth, indicating that a slow recovery of private consumption is expected; at the same time, a decrease in the projection for gross fixed capital formation is estimated for this year.

Finally, Costa referred to a possible growth of the Gross Domestic Product (GDP) between 1.5 % and 2.5 % in 2025 and 2026, respectively, due to a greater boost in exports and a lower boost in imports in the face of weak domestic demand.

M.Pino

Source: americaeconomia

(Reference image source: Alisson Rods on Unsplash)

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