UPDATE 4-Chile June inflation at 17-yr high, rate hike seen
July 3rd, 2008 | by admin |* Chile June inflation hits 17-year high
* Inflation data boosts rate hike expectations
* Chile stocks fall sharply on data, peso firms (Updates with quotes from a Chilean mother)
By Antonio de la Jara
SANTIAGO, July 3 (Reuters) - Chile’s consumer prices rosea surprisingly steep 1.5 percent in June on transport and foodcosts, the highest level for the month in 17 years, thegovernment said on Thursday, reinforcing rate-hikeexpectations.
Prices were expected to rise 1.2 percent, according to amedian forecast of nine analysts and economists polled byReuters this week, and compares to a 1.2 percent rise in May.Last year, inflation in June was 0.9 percent.
Over the 12-month period ending in June, the country’s CPIrose 9.5 percent, according to data from the NationalStatistics Institute. Inflation accelerated from the 8.9percent rise in the 12-month period through May, which hadbeen the highest level in over a decade.
The institute said June consumer prices were at theirhighest level since 1991 — and ordinary Chileans are feelingthe pinch.
Chile’s blue-chip share index .IPSA fell 2 percent inearly trade on the data and high international oil prices, asinvestors bet on the central bank will increase its benchmarkinterest rate this month.
