Chilean market analysts expect inflation to reach 12.5 percent by the end of the year, higher than the previous month, according to the Economic Expectations Survey (EEE) released Monday by the Central Bank of Chile.
Economists surveyed in the EEE for September this year said the consumer price index (CPI) would show a variation of 1 percent this month, in line with global inflationary pressures.
The experts also forecast economic growth of 1.9 percent in 2022, in line with last month’s survey and within the Central Bank Council’s estimate of 1.75 to 2.25 percent this year.
The monetary policy rate, a tool used to contain inflation by reducing economic stimulus, is expected to end the year at 11 percent.
Chile’s central bank last week raised its monetary policy rate for the tenth consecutive year, from 9.75 percent to 10.75 percent, the highest level since 1998.
According to a report by the National Statistics Institute (INE), the South American country recorded an inflation rate of 14.1 percent in the 12 months to August, influenced by increased prices of food, gasoline, and lubricants.
In this scenario, the Chilean Central Bank has revised inflation to 12.5 percent by 2022.
The new figure is far from the target range set by the central institution (3%) and exceeds the threshold of the last three decades.