Why isn't UF changing?

Chile Investment, how to invest in Chile, what to watch out for when investing, economic issues, currency exchange in Chile, and more.
Post Reply
texasred
Rank: Chile Forum Tourist
Posts: 24
Joined: Mon Jun 24, 2013 5:48 pm

Why isn't UF changing?

Post by texasred » Mon Jul 08, 2013 1:00 am

The UF rate has been stuck for weeks now.
Why isn't it changing?
I thought it was supposed to reflect the consumer price index here.
Is it not permitted to fall when there is deflation?
And does that mean now that there is deflation every day?
Anybody know?

User avatar
eeuunikkeiexpat
Rank: Chile Forum Citizen
Posts: 7471
Joined: Fri Sep 01, 2006 1:38 am
Location: Megalith of unknown origin near my digs, south V Region coast

Re: Why isn't UF changing?

Post by eeuunikkeiexpat » Mon Jul 08, 2013 2:03 am

Deflation my ass. All govs lie about fiat devaluation and input price inflation.
Generally, just a SPAM KILLER. You are on your own in this forum. My personal mission here is done.

BUT when necessary, by way of ridicule and truth revelation we shalt do war.

--eeuunikkeiexpat

User avatar
admin
Site Admin
Posts: 17768
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

Re: Why isn't UF changing?

Post by admin » Mon Jul 08, 2013 11:15 am

What deflation? If it is holding the line for the moment it is because of the dollar copper move. which neither have been really any sort of panic territory.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

User avatar
nwdiver
Rank: Chile Forum Citizen
Posts: 2989
Joined: Tue Mar 17, 2009 8:45 pm
Location: Vancouver, BC and Chile where ever it's Summer
Contact:

Re: Why isn't UF changing?

Post by nwdiver » Mon Jul 08, 2013 2:38 pm

Its a bit of an archaic hold over from many years ago in an era of hyper inflation, it gives a hedge against inflation for long term sales contracts like mortgages, Chile keeps it but really doesn't need it and hasn't for 15 years or so. And yes it is flat, but thats a good thing.................
It's all about the wine.

User avatar
admin
Site Admin
Posts: 17768
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

Re: Why isn't UF changing?

Post by admin » Mon Jul 08, 2013 3:03 pm

I do kind of see it as useful for billboards. You can post the price of house or apatment on a billboard, and not need to keep changing it over the years. Other than that, not really sure.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

texasred
Rank: Chile Forum Tourist
Posts: 24
Joined: Mon Jun 24, 2013 5:48 pm

Re: Why isn't UF changing?

Post by texasred » Mon Jul 08, 2013 7:34 pm

Well, I found out why it's not changing. It didn't change from June 10th to July 10th last year, and it stopped changing on June 10th this year.
I expect it to resume changing on July 10th.

So, it may be due to some maintenance like refiguring the basket of goods to be used in the price index. Or maybe it's somebody's annual vacation.

User avatar
nwdiver
Rank: Chile Forum Citizen
Posts: 2989
Joined: Tue Mar 17, 2009 8:45 pm
Location: Vancouver, BC and Chile where ever it's Summer
Contact:

Re: Why isn't UF changing?

Post by nwdiver » Mon Jul 08, 2013 10:48 pm

texasred wrote:Well, I found out why it's not changing. It didn't change from June 10th to July 10th last year, and it stopped changing on June 10th this year.
I expect it to resume changing on July 10th.

So, it may be due to some maintenance like refiguring the basket of goods to be used in the price index. Or maybe it's somebody's annual vacation.

Instead of going back wards, it pauses when needed. Can't really go backwards, think about it suddenly your mortgage is cheaper for a month??? ;)
It's all about the wine.

ctroxell
Rank: Chile Forum Tourist
Posts: 12
Joined: Mon Jan 29, 2007 9:07 pm
Location: Las Vegas

Re: Why isn't UF changing?

Post by ctroxell » Mon Jul 08, 2013 11:25 pm

The UF does indeed go backwards from time to time ---- as recently as Dec 10, 2012 - Jan 9, 2013.

Post Reply