Chile CPI above target at 4.2% as Central Bank keeps bias

Bloomberg

Chile’s inflation rate was unchanged in May, above the target range, as central bank President Rodrigo Vergara used price-growth to explain the bank’s continued tightening bias in monetary policy as unemployment rises.
Prices increased 4.2 percent from the year earlier, the National Institute of Statistics reported.
In the month, prices gained 0.2 percent, the agency said.
Policy makers retained their tightening bias in the quarterly monetary policy report this week, scotching speculation they may move to a neutral stance after inflation slowed in the three months through April and economic growth remained weak.
Inflation has stayed above the central bank’s 2 percent to 4 percent target range for most of the past two years.