August 08, 2022 18:49 GMT
- Once again, increases in goods and services prices were highly diffused. Around 63% of the products in the consumption basket rose m/m, mainly owing to inflationary inertia; an economy in which consumption shows little sign of slowing, and a multilateral depreciation of the CLP that accelerated in July.
- Scotiabank estimate that inflation for August will be between 1.0 and 1.1% m/m, reaching its year-on-year historical maximum of around 14%. Among the main contributions, Scotiabank anticipate an additional increase in electricity fares, along with higher gasoline and diesel prices and positive contributions of food, mainly those affected by the recent depreciation of the CLP, such as meat and other imports.
- For the central bank, the current conjuncture unequivocally points to upward adjustments in the benchmark rate. Scotiabank reiterate an adjustment of (no less than) 75 basis points in the September meeting that would place the reference rate at 10.5%, pending additional increases of 50 bps, conditional to the absence of new inflationary surprises.