Presenting the Public Finances Report before a parliamentary committee, the Minister of Finance, Mario Marcel, added inflation in December will close at 11,1%, a sharp increase compared to the previous estimate of 8,9%.

The Minister said in the case of Gross Domestic Product (GDP) growth there is no significant change, since in the second half of the year there will be a greater weakness in consumption and demand. He also stated that the mining GDP is expected to have a negative variation this year.

The recent collapse of the local currency together with the strong inflation put pressure on government plans, which are currently seeking to strengthen fiscal revenues to make their promises of social improvements viable, Marcel said.

He warned as for economic activity, the exchange rate and the price of copper the country has more negative figures for the second half of the year than those estimated so far and more negative than those recorded in the first half of the year.

The Central Bank of Chile adjusted upwards at the beginning of June the economic growth estimate for this year between 1,5 and 2,25%, while for 2023 it would show an economic contraction of 1% or a zero advance.

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