Chilean inflation loses strength in April, according to forecasts

Inflation in Chile slowed in Aprilsince food prices have risen less than the previous month, while clothes and shoes have become cheaper.

Chile's consumer price index rose 0.3% from March, in line with the average forecast of badysts surveyed by Bloomberg. Annual inflation remained at 2%, below the target of 3%, reported Wednesday the National Institute of Statistics of Chile.

Prices of food and beverages were responsible for most of the inflation in April, even when it increased less than in March. Four of the 12 sectors registered by the index recorded a decrease in prices compared to the previous month. The central bank should keep its key rate unchanged at 3% this week and throughout the year, with inflation to remain under control. Traders have increased their 12-month inflation forecast from 2.8% to 2.9%, according to a central bank survey released on Monday.

Prices, excluding food and energy, rose 0.1% from March, compared with 0.4% in the previous period. Education costs, which had accounted for most of March 's inflation, remained unchanged in April.