Santiago de Chile, May 8 (EFE) .- The Consumer Price Index (CPI) in Chile rose two tenths in April to 4.5 % year-on-year, as expected the lowest expectations of the market, promoted by an increase in housing prices and basic services, as well as in diverse goods and services, the National Statistics Institute (INE) reported Thursday.
“Nine of the thirteen divisions that make up the CPI basket contributed positive incidents in the monthly variation of the index and four presented negative incidents,” said the agency.
In the housing and basic services division, which grew by 0.2 % this month and they have done 10.6 % in the last twelve months, the increase in leases and materials for home maintenance stand out.
In the group of diverse goods and services, which recorded a 1.2 % increase this month and 4.1 % the last 12 months, the rise in products for personal care and jewelry and watches stands out.
From the divisions with monthly casualties in their prices, costumes and footwear stand out (-2.0 %).
Chile recovered faster than expected after the pandemic, with a historical increase in GDP of 11.7 % in 2021, but in 2022 it began to slow down and closed with a growth of 2.4 %.
The financial aid delivered by the government to alleviate the impact of the crisis and the anticipated retreats of the pension funds considerably promoted consumption and fired inflation, to which the effects of the war in Ukraine added.
After an aggressive increase in rates to contain the runaway rise in prices, the Central Bank of Chile has maintained since January the referential interest rate in 5 % and has not implemented more cuts, leaving the process initiated in July 2023.
Against the forecast, in 2023 the South American country dodged the contraction and the GDP closed with a shy growth of 0.2 %. On average, in the first three years of the government of progressive Gabriel Boric, growth reached 1.8 %. For this year, the World Bank projects that Chile will grow 2.2 %. EFE
