Inflation in Chile
In Chile, inflation from 2013 to 2022 was largely managed within the central bank's target range of 2 to 4%. However, social unrest in 2019 and the COVID-19 pandemic in 2020 disrupted this stability, leading to increased inflationary pressures. By 2022, inflation had risen significantly, driven by global supply chain disruptions, increased fiscal spending, and recovery demands. The central bank responded with monetary tightening to control rising prices.
Consumer price inflation in Chile averaged 4.1% in the ten years to 2022, below the Latin America regional average of 8.4%. The 2022 average figure was 11.6%. For more inflation information, visit our dedicated page.
Chile Inflation Chart
Chile Inflation Data
2018 | 2019 | 2020 | 2021 | 2022 | |
---|---|---|---|---|---|
Inflation (CPI, ann. var. %, aop) | 2.4 | 2.6 | 3.0 | 4.5 | 11.6 |
Inflation (CPI, ann. var. %, eop) | 2.6 | 3.0 | 3.0 | 7.2 | 12.8 |
Inflation drops to lowest level since May 2021 in January
Inflation came in at 3.8% in January, which was down from December’s 3.9%. January's figure represented the lowest inflation rate since May 2021, and marked the second consecutive month that inflation has been within the Central Bank’s 2.0%–4.0% target range. Annual average inflation fell to 6.9% in January (December: 7.6%). Meanwhile, core inflation fell to 3.8% in January, from the previous month's 4.2%. Finally, consumer prices increased 0.67% in January over the previous month, swinging from the 0.54% fall recorded in December and beating market expectations of a 0.4% rise. It should be noted that from January 2024 the statistics office introduced a new consumption basket, which altered the relative weights of the goods included, among other changes.
On the monetary policy implications, Itaú Unbanco analysts said: “While the January print surprised to the upside, the new basket reflects lower levels of inflation with headline inflation even closer to the target. With the positive output gap expected to have closed, and anchored inflation expectations, the Board will continue to cut rates at the start of April.”
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Chilean inflation projections for the next ten years from a panel of 37 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable inflation forecast available for Chilean inflation.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Chilean inflation projections.
Want to get access to the full dataset of Chilean inflation forecasts? Send an email to info@focus-economics.com.
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