Chile’s CPI surprised expectations and market pricing to the upside with headline inflation printing at 0.6% MoM and 4.5% YoY (expectation: 0.2% MoM, 4.1%YoY | Market 0.15% MoM). The headline annualised print went from 3.8% to 4.5% in the chained series and stands at 3.6% YoY in the rebased series, up from 3.2% in January. CPI Ex-Volatiles, the key measure used by BCCh policy makers, printed up 0.6% MoM, as the 3m SAAR annualised rate jumped to 4.0%, in a clear hawkish print and that will likely push market pricing to a 50bp-75bp cut in the next meeting on 2 April, from a 100bp cut.
See our note for more on the breakdown, drivers, and our expected market impact