Thousands of protesters gathered in Santiago's Plaza Italia for the seventh consecutive Friday since the beginning of the anti-government demonstrations that have swept the nation since October.

Water cannons sprayed the crowds, who threw rocks back in the Plaza, which is locally known as 'Dignity Square.'

Demonstrators denounced the actions of Chilean police which they said have led to 232 protesters suffering from eye injuries, with footage showing people wearing eyepatches.

The protests were triggered by a now-withdrawn increase in subway fares. Social discontent has been fuelled by frustration with President Sebastian Pinera's policies and growing inequality.