Inflations drops 0.2% in April

SANTIAGO.- According to information released today by the National Statistics Institute (Instituto Nacional de Estadística, INE), inflation registered a decline of 0.2% in April of this year primarily as a result of declines in the prices of food and clothing.

The information challenged market expectations of a slight increase of 0.2% for the month.

With the figure, the CPI has accumulated a total decrease of 0.9% so far this year and a total increase of 4.5% over the last 12 months, continuing the negative tendency that began in November of last year.

During March of last year, inflation registered a 0.4% growth rate after negative CPI figures were reported between November of 2008 and February of 2009.

For the whole of this year, analysts have forecasted an inflation rate of 1.8%, following the 7.1% hike observed in 2008.

The variation in the April CPI can be explained as a result of the decreases seen among the majority of elements that make up the consumer basket, especially Clothing and Shoes (-2.3%), as well as Food and Non-Alcoholic Drinks (-0.6%). The data for the sectors was partially countered however, by increases in Health (2.3%) and Transportation (0.6%), which according to the INE were the only divisions that reported increases during the month of April.