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Chile closed 2022 with inflation of 12.8%, the highest in over 30 years.

Annual inflation in Chile is the highest in 31 years. | Font: AFP

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Chile growth registered in December Consumer price index (CPI) of 0.3%, with cumulative inflation at 12.8% in 2022, the highest in 31 years, the National Institute of Statistics (INE) said on Friday.

Among the products that suffered the most were food and non-alcoholic beverages, in addition to recreational and cultural activities. On the other hand, transport and energy recorded a monthly drop in the last month of 2022.

According to INE, in December, “six of the twelve sections that make up the CPI basket contributed positively to the index’s monthly variation, five registered negative cases, and one represented a zero level.”

annual inflation This is the highest in 31 years, helped by rising prices for most products in Chile, especially food and transportation, as a result of the large liquidity generated by three early withdrawals from pension funds approved by Congress to fight the pandemic. 2020.

These withdrawals of pensions from private funds have been added to public assistance provided to the population during 2021 to cope with restrictions coronavirus.

Minister of Finance, Mario Marcelsaid that December inflation was “a figure that is very much in line with market expectations (…) and shows a fall (from) the highest point reached in August of 14.1%,” he commented to Radio Cooperativa. .

Going forward, he added, “we can expect to see a decline in inflation throughout 2023” along with an already apparent “cooling” in consumption and falling international fuel prices, among other things. factors.

Government measures

To cope with inflation and falling economic activity, the government of the left Gabriel Boric announced on Thursday about $2 billion in family support measures.

Standing out among them is the doubling of the bonus that will be delivered to nearly three million people, which will now be $140.

Central Bank of Chile predicts 2.4% growth in gross domestic product (GDP) for 2022, and foresees an economic downturn for 2023. (AFP)


Source: RPP

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