Chile registers inflation of 1.3% in October and once again breaks a monthly record in 13 years

Chile registers inflation of 1.3% in October and once again breaks a monthly record in 13 years

According to the INE, seven of the twelve sectors increased their prices, four reduced and one registered zero incidence. In the increases, transportation (3.9%) and recreation and culture (7.8%) stood out; and in clothing and footwear decreases (-3.3%).

Chile closed 2020 with an inflation of 3%.

The Chilean economy has recovered earlier than expected from the strong impact of the pandemic, to grow in 2021 to 11.5%, according to the Central Bank.

Nevertheless, tax aid to families and early withdrawals from pension funds have caused excess liquidity that has pushed prices up.

Ten days ago the Chamber of Deputies approved a fourth early withdrawal of 10% of pension funds to help families, which could further stimulate consumption and raise prices, according to the Central Bank and independent economists.

The initiative launched by opposition legislators will be discussed next Tuesday in the Senate despite resistance from the conservative government of Sebastián Piñera, which affirms that this new withdrawal is not justified because employment has recovered and because it fuels inflation.

Source From: Ambito

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