Chile Holds Its Rate at 4.5% as Monthly Inflation Doubles Forecasts
Chile's central bank left its rate at 4.5% on the same day inflation came in at double the forecast. Annual inflation is now 4.1%, above target. The post Chile Holds Its Rate at 4.5% as Monthly Inflation Doubles Forecasts appeared first on The Rio Times .
On 8 September, Chile's central bank maintained its monetary policy rate at 4.5%, consistent with the level since December 2025. The decision was unanimous. The bank stated it would make decisions meeting by meeting, citing uncertainty as greater than usual due to conflict between the United States and Iran, as well as increased copper trading.
Meanwhile, the country's statistics office released August consumer prices on the same day, showing a significant rise of 0.6% month-over-month, well above the market's 0.3% forecast. Consequently, annual inflation reached 4.1%, the highest of 2026, with accumulated inflation for the year standing at 3.6%. However, some reports incorrectly claimed that annual inflation was double the forecasts, when in fact, the doubling applies only to the monthly figure.
Food and non-alcoholic drinks contributed about a third of the percentage point increase, while transport added roughly two-tenths. Nine of the thirteen categories in the index rose, with only information and communication falling. The bank attributed the increase to volatile items, with core inflation at 3.3%, anchored at 3%. Annual inflation remains above the central bank's target of 3% with a one percentage point tolerance band.
Despite the economic team's weak performance, the government dismissed the criticism, attributing the price surge to weather systems and geopolitical factors.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
