Inflation seemed to be an endemic disease of the Chilean economy for most of the 20th century with its presence being felt even before the creation of the Central Bank in 1925. However things seemed to change drastically in the mid 1990s when the country began to experience a sustained process of convergence toward inflation rates similar to those prevailing in industrialized economies. While convergence has not been completely smooth and inflation concerns managed to get back to the spotlight as recently as 2008 Chile’s long inflationary tradition seems to be a thing of the past and the country now enjoys the benefits of price stability.