INSUBCONTINENT EXCLUSIVE:
Chile reports the lowest yearly inflation in 24 months at 5.3% in August
The National Institute of Statistics (INE) provided this data.This is the lowest rate in two years
Local media say this is a two-year low.Until April, the nation saw price hikes above 10% for 12 months
Positive changes appeared in seven of the 12 CPI sectors in August.Chile reports the lowest yearly inflation in 24 months at 5.3% in August
(Photo Internet reproduction)Food and non-alcoholic drinks rose by 0.3%
Housing and basic services increased by 0.4%.Other goods and services fell by 0.8%.Last year ended with the highest inflation in 30 years
For months, inflation had burdened consumers and policymakers alike.High inflation usually strains household budgets
It also puts pressure on the Central Bank to hike interest rates.Yet, the Central Bank aims for a 2-4% inflation rate
Falling short of this target suggests ongoing economic challenges.Persistent inflation often leads to reduced consumer spending
It had wide-reaching impacts, from food prices to rent costs.But this new data suggests a cooling trend
If it continues, Chile might approach its target range soon.However, some sectors still show increased costs
For instance, food and housing costs rose
These are vital needs, so their increase is concerning.The decline in other goods and services offsets this a bit
The situation is a mixed bag, requiring careful monitoring in the coming months.
