01 December 2008

Chile Will Meet 2008 Annual Budget Surplus Goal, Velasco Says

By Nathan Gill
     Dec. 1 (Bloomberg) -- Chile’s Finance Minister Andres Velasco comments on Chile’s budget surplus. Velasco spoke to reporters in Santiago today.

On the October budget deficit:
     “This is not unusual. Fiscal income fluctuates month to month, expenses fluctuate month to month and nobody in their right mind should worry about the government’s monthly net expenses. The budget surplus goal will be met, that is the important thing.”

On Chile’s inflation:
     “If you look at inflation expectations for 2009 of the last few months, they fell by half. This happened in Chile and in many other countries. Much of the increase in prices was due to the price of oil. It also had to due with the increase in food prices. These were at record levels midway through the year and are also falling now. So, it shouldn’t be a surprise that inflation expectations are falling in Chile, as they are in various other countries.”