Chile's Trade Activity Index grew 6 percent year-on-year in August, reaching a combined growth of 6.8 percent in the first eight months of the year, the National Institute of Statistics (INE) said Tuesday.

The figures surpassed local market expectations which had predicted a year-on-year increase of 3 percent in the country's trade activity, mainly because July's rate was 3.1 percent, INE said in a statement.

The increase is due to better than expected performance in wholesale trade, which saw growth of 8.1 percent, the institute said.

Retail sales grew 4.8 percent in August, reaching a combined growth of 3.9 percent from January to August this year.

Chile raised its economic growth forecast from 3.8 percent to 4.1 percent for the year due to increased investment in the construction industry, the government announced Tuesday.