Three phenomena threaten economic stability in Chile, according to Vittorio Corbo, the governor of the central bank.

Speaking in Santiago last week, Corbo said the three main threats to price stability and growth were:

An eventual propagation of food and energy price shocks to inflation dynamics, in the context of a closing output gap and transitory high inflation rates;

Larger adjustments in global financial markets, with more severe consequences for world growth and commodity prices; and

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