Chile: Once again CPI inflation above expectations in February

CPI increased 0.4% MoM in February (+4.4% YoY), above both our expectations and those of the market (at 0.2% MoM). Nonetheless, the measure that exclude foods and energy increased only 0.26% MoM. The print was driven by positive contributions from housing and utilities, mainly electricity fares and rentals, that were only partially compensated by foodstuffs and transportation (basically fuels). An increased diffusion of prices was observed, with 65% of the basket showing price increases, the highest in the last 10 year for this month. The latter, as a consequence of second-round effects of past inflation, and to some extent due to exchange-rate depreciation (in the case of automobiles). All in all, we expect no changes in policy rates in March.

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