2007 annual inflation rate at 7.8%

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SANTIAGO.- Fortunately there were no more months in 2007: the inflation rate ended up exceeding the projections made by analysts and market consensus. According to reports from the National Statistics Institute, the Consumer Price Index (CPI) for December was reported at 0.5%, making for a final annual inflation rate of 7.8%.

Despite a descent in the past few months, 2007 was marked by price increases in the two most influential groups of the basket of consumer goods: Foodstuff and Housing.

In general terms, Foodstuff prices increased by 15.2%, with a yearlong incidence of 3.75%. Housing registered a 12.1% increase, accounting for 2.69% of the annual CPI. These two groups alone represent a 6.44% increase in the annual CPI.

The rest of the groups included in the calculation of the CPI reported the following changes: 6.8% Other Goods; 4.0% Education and Recreation; 3.2% Transportation; 1.9% Healthcare; -0.8% Clothing and -0.1% Housing Supplies. All together, these six groups accounted for 1.39% of the annual CPI.