Chile´s inflation rate fell in January from an 19-month high the month before, even after the peso depreciated for three months.
Inflation eased to 2.8 percent from 3 percent in January, the National Institute of Statistics said in a report released in Santiago today. The median estimate of six economists surveyed by Bloomberg was for inflation to remain unchanged. In the month, prices gained 0.2 percent.
The central bank cut interest rates in October and November as an investment boom began to ease and economic growth slowed. The rate cuts and the prospect of tighter monetary policy in the U.S. has led the peso to weaken 6.3 percent against the dollar in three months, pushing up import costs. Still, policy makers remain “relatively unconcerned” about inflation, central bank President Rodrigo Vergara said in an interview on Jan. 20.
Read full article…