Latam Daily: Weak Chilean Economic Activity and Peruvian CPI

Chile's economy faced a sharper-than-expected 1.2% contraction in April alongside rising unemployment, while Peru's core inflation remained sticky despite a dip in headline figures.

Key Takeaways

• 1.Chilean economic activity (Imacec) contracted by 1.2% y/y in April, missing consensus expectations and driven by a significant 12% drop in mining.
• 2.The Chilean labor market continues to weaken, with unemployment rising to 9.1% and formal employment seeing its second consecutive quarter of destruction.
• 3.In Peru, headline inflation fell to 3.9% y/y in May, but core inflation unexpectedly rose to 4.5% y/y, indicating persistent underlying price pressures.

Table of Contents

• CHILE: ECONOMIC ACTIVITY FALLS 1.2% Y/Y IN APRIL—ANOTHER NEGATIVE SURPRISE
• LABOUR MARKET DETERIORATION PERSISTS
• PERU: HEADLINE INFLATION DECLINES, BUT CORE INFLATION SHOWS NO SIGNS OF MODERATION

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