With information from AFP
The Consumer Price Index (CPI) of Chile registered a rise of 1.3% in October compared to the previous month, the highest monthly figure in 13 years for the second consecutive month, the National Institute of Statistics (INE) reported on Monday.
With this variation, Chile accumulated inflation of 5.8% so far this year and 6% in twelve months, above the target range established by the Central Bank between 2 and 4%, just in the first result after the historic increase in rates by the Central Bank in mid-October.
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%).
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.
10 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.
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