Experts raise inflation projections for 2008 from 4.7% to 5.5%

SANTIAGO.- According to the Central Bank’s Economic Expectations Poll for June, this year’s inflation forecast has registered a strong upswing.  Experts surveyed by the financial entity rose inflation estimates for this year from 4.7% to 5.5%.

The prediction makes for the poll’s fourth straight increase in the inflation forecast for 2008.  The same poll taken in February of this year yielded an estimate of 3.8%, while March, April and May projections were 4.3%, 4.4% and 4.7% respectively.

Meanwhile, analysts expect the June CPI to reach 0.7%, saying that inflation should be at about 3.7% by December of 2009.

Concerning the interest rate, those polled are predicting that the Central Bank will increase the figure by 25 base points, to 6.5%, at its meeting tomorrow.  Additionally, analysts believe that the interest rate will remain at this level over the next few months and until the end of the year.