Chile's consumer prices fall by 0.4%

Chile’s consumer prices fall by 0.4%

In December, Chile's consumer prices showed a decline for the first time in the last 11 months as the decline in oil prices made bus fares cheaper and the strong Peso cut the cost of imports. Last month, consumer prices fell by 0.4%. The decline in prices may lead the Chilean central bank to delay raising its lending rate, which was boosted twice in 2004 to 2.25% after the economy strengthened. Food prices also showed a downward trend last month. The central bank may wait until March to increase interest rates again. The central bank has increased lending rates twice since September 2004, when the rate was at an all-time low of 1.75%.