President Michelle Bachelet was forced to offer public backing for
her beleaguered finance minister, Andrés Velasco, this week as a combination of
low growth and high inflation figures triggered widespread criticism of his
performance, including from within the ruling Concertación. Inflation hit a
17-year high for June at 1.5%, bringing 12-month inflation to 9.5%, the highest
level for 14 years. Economic growth, meanwhile, slowed to just 2.1% in May,
according to the central bank, down from 4.8% annual growth in April.
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