Central bank raises inflation forecast to 8.5% for 2008

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SANTIAGO.- The Chilean economy is predicted to register an inflation rate of 8.5%, along with GDP growth of between 4.5% and 5% by December of 2008.

This is the scenario forecasted by the central bank in its September Monetary Policy Report.

The inflation estimate is significantly higher that what had been predicted by the May Monetary Policy Report (4.7% by December 2008), while the GDP growth figure is only slightly higher, given that the range forecasted by the previous report had been between 4% and 5%.

The Monetary Policy Report establishes that the inflation goal will be reached in the year 2010, predicting that it will be at approximately 3% by the third trimester of that year.  Meanwhile, inflation for 2009 is expected to be at 4.9%.