José De Gregorio: US$ 1 billion increase to the FEPC will cut inflation by 0.5 points

SANTIAGO. -  The president of the Central Bank, José De Gregorio, stated today that the addition of US$ 1 billion to the Fuel Price Stabilization Fund (FEPC) will help to reduce inflation by approximately half a percentage point for this year.

These “are actions that contribute to the alleviation of this problem that we have” stated the head of the issuing entity on Radio Cooperativa.

De Gregorio explained that although the initiative “intends to slow some of the increases being observed in one of the biggest consumer price problems today”, that “doesn’t change the fact that it our responsibility to control inflation”.

“The most difficult problem that we have is that all of these increases that we have seen cannot be repeated within the system, and that is not achieved by subsidizing a commodity or trying to support this or that, that is achieved by a general shift in all prices towards more stability”, explained the economist.