Chile's inflation rate highest since 2007

Chile's inflation rate hit 7.2% in 2021, the highest since 2007, when it rose to 7.8%, the National Statistics Institute (INE) said Friday, Report informs, citing Xinhua.

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

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% rise in the CPI in December, well above market expectations (of 0.5 %), represents a double concern," said Palacios.

According to the INE's report, in 2021 Chile saw the biggest growth in prices for transport (18.9%), leisure services (14.4%), as well as restaurants and hotels (10.1%), while prices for food and soft drinks rose 5.5%.

The main factor driving the inflation up was the companies' inability to respond quickly to the increased demand for goods, the Institute said.