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Chile Inflation

Chile Inflation

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

Note: This chart displays Inflation Rate (CPI, annual variation in %) for Chile from 2021 to 2018.
Source: Macrobond.

Chile Inflation Data

2019 2020 2021 2022 2023
Inflation (CPI, ann. var. %, aop) 2.6 3.0 4.5 11.6 7.6
Inflation (CPI, ann. var. %, eop) 3.0 3.0 7.2 12.8 3.9

Inflation rises in June

Inflation came in at 4.2% in June, which was up from May’s 4.1% and above the Central Bank’s 2.0%–4.0% target range. Looking at the details of the release, prices for food and non-alcoholic beverages and housing, utilities and fuel increased at a quicker rate in June. The latter was likely influenced by the re-rating of electricity tariffs which began in July and is set to continue later this year. The trend pointed down slightly, with annual average inflation coming in at 4.6% in June (May: 4.8%). Meanwhile, core inflation fell to 2.9% in June from May’s 3.3%. Lastly, consumer prices dropped 0.10% over the previous month in June, contrasting May's 0.27% increase. June's result marked the weakest reading since December 2023.

On the near-term outlook, Itaú Unibanco analysts said: “Headline inflation pressure will continue to rise as electricity price adjustments continue and pass-through from tradables trickles in. Although the distribution component of electricity rates already had a first increase in June, we expect a first relevant jump in the generation and transmission components in July. Furthermore, in July, certain price drops that occurred due to cyberday should be reversed.”

Consensus Forecasts and Projections for the next ten years

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 38 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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