De Gregorio: Escalating price of oil is the biggest threat to inflation and growth

SANTIAGO.- The president of the Central Bank, José De Gregorio, said Monday that high oil prices are the most significant threat to inflation and economic growth within the country. Meanwhile the government is preparing to announce a series of measures to mitigate the effects of the surge in petrol prices.

“The main inflationary threat nowadays is the substantial increase in the price of oil, which is a result of a significant increase in demand for the resource”, De Gregorio stated during an economic seminar.

During his speech, De Gregorio added that it is important for fuel prices to adequately reflect the shortage so that the demand for the resource is reduced, “which is crucial in order to eliminate further pressure on prices”. 

President Michelle Bachelet has planned to announce a package of initiatives today that are aimed at combating the effects of oil price hikes at a local level.