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Accelerating Inflation Makes Chilean Peso Biggest Gainer

May 9, 2014 at 9:25 by Vladimir Vyun

Some Chilean peso banknotesThe Chilean peso rallied today as nation’s consumer prices grew with faster pace, suggesting that there is no immediate need for the central bank to stimulate economic growth with additional monetary accommodation.

Chile’s inflation climbed from 3.5 percent in March to 4.3 percent in April, exceeding the central bank’s target of 2 to 4 percent for the first time since February 2012. The Central Bank of Chile kept interest rates steady last month after two consecutive cuts and may do so again this month. The peso touched 553.05 against the US dollar, rallying as much as 2.2 percent. It was the biggest gain among currencies of emerging markets.

USD/CLP slid 1.83 percent to 554.99 as of 9:24 GMT today.

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