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December Inflation Exceeds Estimates, Pressuring BCCh

CHILE
  • Inflation data showed prices in December were still under significant pressure from increasing food prices and supply shortages. Additional pressures from the depreciating Peso and strong domestic demand are likely to maintain pressure on the BCCh to tighten policy accordingly.
    • Chile Dec. Consumer Prices Rise 0.8% M/m, Est. +0.6%
    • Chile Dec. Consumer Prices Rise 7.2% Y/y, Est. +7.0%
  • Additional data released showed a wider trade surplus than expected:
    • Chile Posts $520m Dec. Trade Surplus; Est. $200m
    • Chile Dec. imports $8.517b
    • Chile Dec. exports $9.037b
    • Chilean copper exports fell to $4.91 billion in Dec.
    • Chile Dec. international reserves total $51.3 billion
  • The Chilean peso is currently up 0.5% to start Friday’s session as we await employment figures from the US. USDCLP trades 833.30 and has breached the 50-day EMA. A clear break of this EMA would suggest scope for a deeper bear leg and open 818.65, the Dec 1 low.

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