Santiago Stock Exchange and dollar drop following release of inflation figure

SANTIAGO.- Both Chilean stocks and the dollar have been falling this morning after an inflation figure was reported that surpassed market estimates, backing analysts´ expectations for a new aggressive hike on interest rates to be made this month by the Central Bank.

The blue-chip IPSA index, which includes the 40 most traded stocks in the Santiago Stock Exchange, had dropped 2.01% to 2,782,67 points at 11:27 AM today.

Meanwhile, on Wednesday, the IPSA lost 3.82% -- its most significant drop since January.

At the same time, the dollar had fallen by $8.40 to $508.40 buyer and $508.70 seller on the Chilean market.

The Instituto Nacional de Estadística (INE) revealed today that the inflation rate for June was 1.5%-- the highest for the month in 17 years and above market estimates that had forecasted the figure to be 1.2%.