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Itaú Says Intense Rainfall May Pose Upside Risk To Food CPI

CHILE
  • Itaú have noted that on Monday the Minister of Agriculture in Chile affirmed that recent weather developments are affecting agriculture in the center-south regions of the country, stating that there could be limited increases to some prices (of around 10%) after the latest floods.
  • Itaú say some consequences may be seen affecting August CPI, but the bulk of the effect should be seen in the September CPI print. Of note, fresh fruits and vegetables have a weight of around 3% in headline CPI.
  • Furthermore, upside risks for the following months remain present since similar events are expected due to a strengthening of El Niño.
  • For reference, the next CPI print does not fall until September 08, three days after the next BCCh decision.

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