MercoPress. South Atlantic News Agency

Chilean president pledges food subsidies for vulnerable families; inflation the highest in three decades

“I am well aware that people need more resources and that we are in the midst of an inflationary spiral difficult to address, ”admitted president Boric

Chilean president Gabriel Boric said his government was preparing a mechanism to help vulnerable families pay for their basic food basket, which is to be financed with subsidies.

“I am well aware that people need more resources and that we are in the midst of an inflationary spiral difficult to address. That is why we are working in a special mechanism, to be announced soon, with subsidies for basic goods from the food basket”, Boric told a media conference in the Coquimbo Region.

March inflation in Chile reached an annualized 9,4%, the highest in three decades in spite of several consecutive interest rates hikes.

“In this context I am asking for some patience and to understand we are working on measures which can be unpopular, but they are being worked out for the good of the most vulnerable families”, indicated the president. “We are going to bring down the cost of living, but I want sustainable measures, that down affect the overall economy because that will hit us all”.

Boric also praised lawmakers for having voted against another withdrawal from the pensions' fund, which was an instrument to help Chileans overcome the recession during the Covid 19 pandemic, but also fuelled a consumption boom and inflation.

A survey done in Punta Arenas by the local newspaper La Prensa Austral, showed that the basic family basket in two months had increased almost 28%, mostly because of the price of food.