June 05, 2024 11:09 GMT
Firms’ Inflation Expectations Remain Stable
CHILE
- Despite the 2.7% decline in copper prices yesterday, USDCLP only closed 0.45% higher at 907, as soft US labour market data and a decline in US yields likely restrained the move. A bear trend in USDCLP remains intact, with attention on 886.96 next, the 76.4% retracement of the Dec 1 ‘23 - Feb 26 bull leg. On the upside, the next resistance to watch is 928.65, the 50-day EMA.
- BCCh published its survey of price determinants and expectations for the quarter ending April, which showed that firms’ one-year ahead inflation expectations remained at 4%, while the two-year outlook held at 3.5%. Despite recent FX strength, firms report that previous CLP weakness continues to push prices up, but they note that sales levels are not exerting pressure on prices.
- No macro data are due today, with focus remaining on Friday’s May CPI release, where analysts expect inflation according to the chained measure to tick up to 4.1% y/y.
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