Fabian Cambero

SANTIAGO (Reuters – Chile’s Consumer Prices soared 1.9% in March. It is the biggest monthly increase in over thirty years. The challenge that authorities have to face as they fight spiraling inflation exacerbated with rising commodity costs worldwide.

According to the official statistics of Andean, Friday’s rise in food prices was caused by education, non-alcoholic beverages, and higher educational costs.

This monthly rate was much higher than expected by economists in a Reuters poll and it is the highest since 1993. Further, the rolling 12-month rate climbed to 9.4%. This is the highest level since 2008.

This is still well above the target rate for central banks of 2%-4%. It has driven a spate of recent interest rate increases and could prompt further tightening.

Latin American governments have sought to reduce inflation. This has been made possible by the supply shortages caused by the conflict in Ukraine. Brazil’s Friday inflation was the highest in 28-years.

Peru is facing the highest inflation rate in 25 years. Rising prices have sparked angry protests and rattled Pedro Castillo, the leftist government.

The Chilean president Gabriel Boric presented a $3.7B economic recovery plan Thursday. It included an increase in the minimum wage to assist with rising costs.

Number 1 in the world. No. 1 country is now producing. The rapid recovery of the COVID-19 epidemic has been aided in part by government spending and withdrawals form private retirement funds. This has led to high inflation.

The central bank raised its interest rate by 150 points in March to 7%, as a way of combating inflation.

Chile inflation: 30-year high https://tmsnrt.rs/3KrEqzE

Chile inflation: 30-year high (Interactive graphic) https://tmsnrt.rs/3jka2Ly

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