Chile Consumer Prices Rise as Pension Withdrawals Boost Demand

• Chile’s consumer prices rose more than forecast on a jump in the cost of clothing and household goods, as the second round of early pension withdrawals juiced demand in one of Latin America’s richest nations.
• Consumer prices rose 0.3% in December from the month prior, more than the 0.2% median estimate from analysts in a Bloomberg survey. Annual inflation sped up to 3%, right on the official target, the national statistics agency reported on Friday.
• Chile’s consumer prices are steadying as the economy recovers from a sharp downturn caused by the coronavirus. The central bank has said there’s less of a risk for low inflation while falling unemployment and a new law allowing for more pension-savings withdrawals boost consumption. Still, recent virus restrictions in capital Santiago may crimp demand going forward.  

(Source: Bloomberg)