Matthew Malinowski

Chile’s economy contracted much more than expected in July as deadly rainstorms temporarily halted some mining operations, according to the central bank’s main monthly gauge of activity.

Chile consumer prices rose much more than forecast last month on a jump in food and transportation costs, according to a report published just as central bankers meet to set their benchmark interest rate.

Chile’s central bank held its benchmark interest rate unchanged, citing intensified risks from the conflict in the Middle East and the possibility of sustained weakness in the local economy.

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A senior Chilean central banker urged investors to look beyond the economy’s recent slowdown, saying a recovery in investment and consumption is expected.

Chile’s economic activity unexpectedly fell in August as lingering effects from winter storms caused mining output to plunge, extending a slump that is dogging President José Antonio Kast’s administration.

Chile’s consumer prices rose slightly less than forecast last month despite another increase in fuel costs, as central bankers signal they’ll remain cautious on monetary policy.

Chilean lawmakers are seeking explanations from regulators over how privately managed pension funds were allowed to build up massive bets on US interest rates that are now triggering heavy losses.

Chilean regulators opened an investigation into all seven of the country’s pension funds following heavy losses in the system’s most conservative funds.

Chile’s central bank held its benchmark interest rate unchanged Tuesday as policymakers face rising inflation expectations and a deepening economic downturn.