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Free AccessItaú Says Intense Rainfall May Pose Upside Risk To Food CPI
- 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.
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.