Chile stands tough on inflation

The Central Bank of Chile raised rates to 7.75%, their highest level since December 1998, and warned that it was likely to hike again.

The central bank acted on the deteriorated outlook for inflation, which hit 9.5% in the year to July - more than triple the central bank's medium-term target of 3%. "July's inflation exceeded forecasts, reflecting increases in most items," the central bank said. "The various measures of core inflation have risen, suggesting a greater-than-anticipated inflation