Velasco predicts negative CPI for November, and inflation between 2% and 4% for 2009

SANTIAGO.- Minister of Finance Andrés Velasco stated today that he predicts that the CPI for November will "very possibly" be negative and estimated that the inflationary goal for 2009 "will once again return to the historical tendency established by the Central Bank, which is between 2.0% and 4.0%".

"With regards to inflation, the news is good. According to estimates, prices are going to fall during the month of November; inflation will be negative. It is also projected that inflation for December will be very low, some people are even talking about 0% and others are forecasting negative inflation, allowing the Central Bank to forecast a closing figure for the year at approximately 8.5%", Velasco stated during an interview with ADN Radio Chile.

Velasco also indicated that the cost of living will be very low during the first few months of 2009, "which means that it looks very likely, and the Central Bank as well as private projections have also indicated the same, that we are going to return to the range that was self-imposed as the goal of the Central Bank; around 3.0%, or, to be more precise, somewhere between 2.0% and 4.0%".