Inflation in Chile

Chile's rate of inflation rose to the highest level in 14 years, so that in October consumer prices were 9.9% higher than in October 2007. We've often heard that the price of oil is a critical (though certainly not the only) factor in inflation across Latin America, as transportation costs grew dramatically. Yet currently oil prices have fallen to just over $60 a barrel.

An obvious question, then, is how long it will take for consumer prices to reflect at least some of that drop. Plus, consumer demand in Chile is also slowing, so something has to give. I would assume a similar dynamic is playing out across the region.