In June 2023, Chile experienced a decrease in the Consumer Price Index (CPI) by 0.2% compared to May, surpassing analysts’ expectations.
This resulted in a year-on-year variation of 7.6%, as reported by the National Statistics Institute (INE) on Friday.
The INE report revealed that the indicator declined in June following three consecutive monthly increases, with a total accumulation of 2.1% so far this year.
It was the second month of the year where the CPI dropped, following a 0.1% decrease in February.
The clothing and footwear divisions saw the largest price decreases, with a 2.4% drop, while transportation experienced a 0.4% reduction.
Conversely, food and non-alcoholic beverages prices increased by 0.3% during the reference period.
Out of the 12 CPI basket divisions, seven had a downward impact on the monthly variation, four reported increases, and one remained unchanged.
Notably, liquefied gas and gasoline experienced monthly decreases of 3.1% and 2.5%, respectively. Lemon prices declined by 24.8%, while wine saw a 2.5% drop.
On the other hand, air transport prices increased by 7.5% in June, and eggs rose by 6.9%, accumulating a 44.1% increase over 12 months.
Chile faced a significant economic crisis in 2022, resulting in 12.8% inflation, the highest in three decades.
The Central Bank of Chile anticipates a decrease in inflation by the end of this year, with a return to the target of close to 3% in 2024.
To address the persistently high inflation, the bank decided to maintain the monetary policy interest rate at 11.25% last month, a figure established in December 2022 after several months of increases.