Fontaine: Inflation news is "very bad, it is a step backwards"

SANTIAGO.- While referring to the topic of inflation, economist Juan Andrés Fontaine has asserted that it is certainly bad news saying, “inflation has been skyrocketing since last year and over the last twelve months we have reached a figure of almost 10%, which is why it is indeed, very bad news, a step backwards”.

During an interview with Canal 13, Fontaine added that “for several months we have been noticing a type of contagious affect on the rest of the prices, which begins as a phenomenon associated with fuel and food hikes”.

When asked whether the Central Bank should raise interest rates in a much more aggressive manner, the economist responded, “yes, if it had been done earlier, we would have avoided these high Consumer Price Indexes”.

Finally, Juan Andrés Fontaine indicated that he believes the government should reduce the growth of public spending, “meaning, create a budget that is ruled by realism and austerity through public spending growth of no more than 4 or 5 real percentage points”.