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Focus On January Inflation Data Due Thursday

CHILE
  • Moderate weakness for the greenback is lending further support to the Chilean peso at Wednesday’s open, with USDCLP now roughly 1.65% off the prior 15-month highs of 959.63. Chile reported a larger trade surplus in January and softer December nominal wages earlier today. It is worth noting that copper exports dipped to $3.38b from $4.16b, an 18% decrease. Copper accounted for 36.9% of total exports in January.
  • Inflation data due on Thursday is the major focus of the domestic docket. The headline annual rate is expected to dip further to 3.5% in January from 3.9% in the prior month. As a reminder, a statement noted the BCCh will not publish any measures for core inflation this month, while it updates its calculations. Revised data for core inflation will be published in March.
  • The major news overnight was that former president, Sebastián Piñera, died on Tuesday when the helicopter he was piloting crashed in a lake in a rural area of southern Chile, government officials and people close to the former president said. Piñera and three passengers were traveling in his small helicopter when it splashed down during a vacation in the town of Lake Ranco, some 460 miles south of Santiago, the capital, said the former president's longtime aide, Jaime Bellolio.

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