Chile Prices Rise More Than Forecast as Rate Cuts Start Anew.

Chile's consumer prices rose slightly more than expected last month, with prices increasing by 0.3% from July. The annual inflation rate also increased to 4.7%, the fastest pace since November. The central bank has started a new round of rate cuts, with policymakers expecting rates to hit a neutral level in the second quarter of next year. However, the cost of living has been affected by electricity tariff hikes and a weaker currency, while domestic consumption remains weak. The central bank predicts that inflation will peak in early 2025 and then quickly slow towards the target of 3% in early 2026. Despite recent economic growth, the Finance Minister warns that figures for August and September will be weaker. [Extracted from the article]