Chile's benchmark IPSA index pulled back on Friday, pausing after a strong weekly rally that saw it reach its highest level since April.

Despite the intraday retreat, the index closed the week with a solid 2.18% gain, marking the best performance in the region for the period.

The rally was driven by a combination of favorable domestic macroeconomic data and policy progress.

Inflation figures showed signs of cooling, easing pressure on the central bank and improving the outlook for consumer spending.

Simultaneously, the passage of a new stimulus package provided a fiscal tailwind, boosting investor confidence in the country's near-term growth trajectory.

This week's performance builds on a resilient trend observed earlier in the week.