Inflation Slows In April

Chilean headline inflation slowed to 0.4% m-o-m in April, from 0.8% m-o-m in March, as a result of lower housing, transportation and education costs. Food inflation remains stubbornly high, however, expanding by 1.3% m-o-m and spiking higher on an annualised basis to 18.2% y-o-y, from 17.6% in March. As a result, food prices contributed 5.0pp to April's annualised CPI figure, which slowed only slightly to 8.3% y-o-y, from 8.5% during the previous month. We believe that April inflation data will be supportive of the central bank's increasingly dovish monetary policy outlook in the medium term.

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