The annual inflation rate in Chile eased to 2.9 percent in October 2018 from 3.1 percent in the previous month. Prices rose less for food & non-alcoholic beverages (3.5% vs 3.7% in September), including bread (4.3% vs 5.3%) and beef (-2.5% vs 0.2%); and housing & utilities (4.4% vs 5.8%), on lower cost of electricity (-2.7% vs 6.1%). Meanwhile, cost rose further for transport (4.0% vs 3.4%), mainly due to gasoline (15.2% vs 13.8%). In addition, inflation slowed for education (4.0% vs 4.1%); miscellaneous goods & services (2.9% vs 3.2%); recreation & culture (2.0% vs 2.5%) and restaurants & hotels (3.2% vs 3.5%). The annual core inflation, which excludes volatile items, dropped to 1.9 percent in October from 2.3 percent in September, hitting the highest level since July. On a monthly basis, consumer prices went up 0.4 percent, following a 0.3 percent increase in August and slightly above market expectations of 0.3 percent. Inflation Rate in Chile averaged 41.59 percent from 1951 until 2018, reaching an all time high of 746.30 percent in April of 1974 and a record low of -3.40 percent in November of 2009.
Inflation Rate in Chile is expected to be 2.90 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Chile to stand at 2.70 in 12 months time. In the long-term, the Chile Inflation Rate is projected to trend around 3.00 percent in 2020, according to our econometric models.