Off The Wire
UPDATE 1-Chile consumer prices rise 1% in November, exceed estimates
The central bank's target range is 2% to 4%. "This is a bad report, showing that inflation pressures remain relatively sticky," Andres Abadia, chief Latin American economist for Pantheon Macroeconomics, said. INE said in a report that the rise was largely due to food and non-alcoholic beverages, which saw a rise of 1.7%, and transportation, which rose 1.3%.
The products that showed the biggest increases were air transport, gasoline, cured meats and others. The agency noted that "recreation and culture" prices dropped, with the largest being an 11.2% drop in tourist packages. Abadia said he believes the "protracted disinflation trend" will emerge from Q1 onwards due to the "lagged effect of tighter financial conditions, the ongoing recession, and falling raw material prices, particularly energy prices."
Chile's central bank has raised the benchmark interest rate
to contain inflation caused by an overheated economic recovery
from COVID-19 and Russia's invasion of Ukraine.
(Reporting by Gabriel Araujo and Fabian Andres Cambero; Editing by Steven Grattan and Alexander Smith)