Hermann Esteban González
The January CPI 0.5% MoM surprised the market and exceeded expectations, due to a significant increase in the price of food (vegetables). Core inflation of 0.3% MoM was largely due to the readjustment of tariffs and a seasonal increase in some services, since the inflation of goods was at 0.1% MoM. The disinflationary impact of the appreciation of the peso is expected to be seen in the coming months.
The growth of 2.6% YoY in the December IMACEC, around what was expected, is a good figure, especially considering that it was a month with two fewer working days. With this, the preliminary growth of 4Q17 and of the year are 2.9% YoY and 1.6%, respectively, giving a positive surprise to the base scenario of the IPoM of December.
February 1, 2018
Chile | MPR (Monetary Policy Rate) remains at 2.5% but the tone becomes clearly contractive
Central Bank sees almost no room for further monetary stimulus. The risks on the downside are accentuated for inflation 2018.