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Nominal Wages Expected At 1400BST

CHILE
  • On the data front, nominal wages for May will be released at 1400BST(0900ET). In April, wages rose by 6.4% y/y. Next week, focus will turn to June CPI data on Monday, where consensus is currently for no change in prices on a m/m basis, but for the annual rate of inflation to edge up to 4.3% y/y, from 4.1%.
  • There is no consensus for the central bank’s preferred CPI ex-volatiles measure, but we previously noted that Scotiabank see a 0.1% m/m increase there, keeping the annual rate at 3.5% y/y, mainly due to a 0.2% m/m rise in the services component, offsetting a 0.1% m/m fall in goods prices.
  • Yesterday’s BCCh minutes confirmed that the central bank adopted a more cautious stance in June ahead of what is expected to be a notable inflationary impulse from upcoming electricity price hikes. The door is still open to further cautious rate cuts through H2, dependent on the incoming data.

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