Chile’s inflation rate hit 7.2 per cent in 2021, the highest since 2007, when it rose to 7.8 per cent, the National Statistics Institute (INE) said.

Last year’s rate was far beyond the 2.97 percent inflation seen in 2020, and well above expectations, the INE said, noting the Consumer Price Index (CPI) rose 0.8 percent in December compared to the previous month, reports Xinhua news agency.

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Economy Minister Lucas Palacios said via Twitter that while inflation affected everyone, it hit “those who have fewer resources” the hardest.

“That’s why the 0.8 percent rise in the CPI in December, well above market expectations (of 0.5 percent), represents a double concern,” said Palacios.

Last year’s inflation rate was also well above the Central Bank’s target rate of 3 percent, “that’s why the Central Bank has been raising interest rates in recent months, and continuing to do so has not been ruled out”, he said.

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