As I have said time and again, the best contribution that the Central Bank can make to the country’s development is to keep inflation low and stable, providing the grounds for sustainable growth. Thus, the Board will continue to guide its monetary policy so that projected inflation stands at three percent over a two-year horizon. Thank you. Figure 1 Inflation indicators  (annual change, percent)  12 10 8 6 4 2 0 -2 -4  12 10 8 6 4 2 0 -2 -4 06  07 CPI  08 CPIX  09  CPIX1  10  11  CPI w/o foodstuffs and energy  Sources: Central Bank of Chile and National Statistics Institute. Figure 2 Inflation expectations (percent) 7  7  6  6  5  5  4  4  3  3  2  2  1  1  0  0 06  07  08  09  EES at December 2011 FOS 2 year ahea (1) EES 2 year ahead  10  11  90  90  80  80  70  70  60  60  50  50  40  40  30  30  20  20 06  FOS 1 year ahead (1) EES 1 year ahead  07  08  09  10  11  Perceived IPEC inflation (2) IMCE costs in 3 months (3)  (1) Financial operators survey (FOS) of first half of the month.
For the regions, dots show the median of Bloomberg's survey to analysts on the expeted MPR for June 2011, September 2011, December 2011, March 2012 and June 2012. Chile uses June's EES for the rate expected for July 2011, November 2011, December 2011 and May 2012. (2) Includes the Eurozone, Japan, the U.K. and the U.S. (3) Includes Brazil, China, Colombia, the Czech Republic, Hungary, Mexico, Peru, Sources: Central Bank of Chile, central banks of respective countries, Bloomberg and the International Monetary Fund. BIS central bankers’ speeches  9  Figure 5 Real exchange rate (*) (index, 1986=100) 120  120  110  110  100  100  90  90  80  80  70  70 91  93  95  97  TCR  99  01  03  1991-2010 average  05  07  09  11  1996-2010 average  (*) Information at 14 June 2011. Source: Central Bank of Chile.