Chile: December’s CPI inflation declined 0.4% MoM, closing 2014 with +4.6% YoY

CPI inflation declined 0.4% MoM in December 2014, slightly below both our and market expectations (at -0.3% MoM). Core inflation measures increased 0.3% MoM, while tradables declined by 1.2% MoM. As expected, the print was driven by negative contributions from fuels, foodstuff, housing (mainly utilities services) and apparel. Positive contribution came mainly from services. With this figure last year close with annual inflation at +4.6%. All in all, no changes are expected for policy rates in January, although we expect further easing of at least 50bp during 1H15.

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