Chilean companies forecast 'above normal' inflation in next 12 months

Chilean companies projected the country's inflation will be "well above normal" in the next 12 months, according to a Business Perceptions Report released by the Central Bank of Chile.

The report, which summarises opinions from companies across the country, on Tuesday said although the effect of inflation on the companies' performance has so far been insignificant, there is a general concern about its impact on household consumption decisions and the possible effect on the companies' future performance.

In addition, most of the companies surveyed said their performance has not shown major variations compared to the beginning of the year, Xinhua news agency reported.

"This is happening in the context of demand remaining rather stable, despite a slight moderation, while cost pressures remain high," the report added.

However, the companies stressed that while selling prices have continued to rise, the perception of profit margins continues to deteriorate due to rising costs.

According to the central bank's latest bulletin, Chile's Consumer Price Index for March registered a monthly increase of 1.9 per cent, bringing the 12-month increase to 9.4 per cent.