Chile’s July Inflation Quickens

Chile’s inflation rate in July rose by 1.1%, faster than expected, taking inflation for the 12 months through July up to 3.8% from 3.2% in the 12 months through June. Chile’s Central Bank is targeting 3%, plus or minus 1 percentage point, this year. Rising fuel and food prices pushed up consumer prices, said national statistics institute INE. Analysts expect the rising prices to prompt the Central Bank to continue cranking up interest rates. Minutes just published of the last monetary policy committee meeting show that the committee contemplated hiking up rates by 50bp last month, but opted instead for a 25bp rise, taking the benchmark rate up to 5.25%.