Chile Economists Forecast 0.4% Inflation in September

By Nathan Gill and James Attwood
Sept. 10 (Bloomberg) — Chilean consumer prices will rebound in September after declining in eight of the 10 previous months, according to economists in a monthly central bank survey.
Prices will rise 0.4 percent in September from a month earlier, according to the median forecast of 28 economists in a survey released today by the bank. For all of 2009, prices will fall 1 percent, the survey said.
Chile’s central bank this week kept its overnight rate at a record low of 0.5 percent and reiterated plans not to raise borrowing costs after consumer prices fell 0.4 percent in August from a month earlier. The annual rate has declined every month since October, when it reached a 14-year high of 9.9 percent.
Economists in the survey said Chile’s economy will shrink 1.5 percent in 2009, unchanged from last month’s forecast.

The peso weakened 0.2 percent to 553.22 per dollar at 1:29 p.m. New York time from 552.35 yesterday.

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