Chile’s annual inflation slowed more than forecast in May on falling transportation costs, stoking bets that the central bank will lower its interest rate from an over two-decade high as soon as next month.
Consumer prices increased 8.7% from a year prior, less than the 8.9% median forecast of analysts in a Bloomberg survey. Monthly inflation stood at 0.1%, the national statistics institute reported on Thursday. A closely-watched price gauge that excludes volatile items rose 9.9% in 12 months and 0.5% from April. Chile’s central bank targets inflation of 3%.
Read More : Chile’s Inflation Slows Beyond Expectations, Fueling Speculation of Interest Rate Cuts