Inflation in Chile falls to 6.5% year-on-year in July

The Consumer Price Index (CPI) of Chile fell to 6.5% year-on-year in the month of July, which represents a reduction of 1.1 points compared to the previous month, according to the National Statistics Institute (INE). From Chile.

This drop of 1.1 points is the same as that recorded by the index last June. On this occasion, year-on-year inflation in Chile has reached the lowest figure since October 2021 (when it stood at 6%). Until last April, the price index in Chile had remained above 10% for 12 months.

However, inflation in the country has already accumulated eight months of decline. This trend allowed the Central Bank of Chile to begin to progressively cut interest rates, with a first reduction of 100 basis points at the end of last July, which places the figure at 10.25%.

In monthly figures, inflation increased by 0.4% in July compared to the fall of 0.2% registered in June. For its part, the index accumulated so far this year stands at 2.5%.

Of the twelve divisions that make up the price index, the largest positive variations occurred in food and non-alcoholic beverages (1.2%), closely followed by the group of alcoholic beverages and tobacco (1.1%).

Meanwhile, the greatest monthly drop occurred in the clothing and footwear group (with a decline of 2.7%). The divisions of home equipment and maintenance (-0.7%), communications (-0.4%), transportation (-0.2%), and housing and basic services (-0.1%) also had a negative performance.

In year-on-year terms, the education division is one of those registering the highest percentage, remaining at 11.3%. This exceeds year-on-year inflation for food and non-alcoholic beverages, which fell to 11% in July (compared to 11.8% in June).

Source: dpa

(Reference image source: Marques Thomas, Unsplash)

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