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
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.”
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.
Latest Global Inflation News
-
Inflation fell to 0.4% in August, below July’s 0.8%. August’s figure represented the lowest inflation rate since April. Looking at...
-
Indonesia: Inflation stabilizes in August
Inflation remained at 2.1% in August, unchanged from July’s figure. August’s result marked the joint-lowest inflation rate since February 2022.... -
Peru: Inflation drops to lowest level since May in August
Inflation inched down to 2.0% in August, following July’s 2.1%. August’s figure marked the weakest inflation rate since May, and... -
Kazakhstan: Inflation drops in August
Inflation ticked down to 8.4% in August from July’s 8.5%, though remaining entrenched above the Central Bank’s 5.0% medium-term target.... -
Korea: Inflation falls to lowest level since March 2021 in August
Inflation fell to 2.0% in August, following July’s 2.6%. August’s reading represented the weakest inflation rate since March 2021, and... -
Kenya: Inflation increases in August
Inflation ticked up to 4.4% in August from July’s 4.3%. Looking at the details of the release, faster price pressures... -
Euro Area: Inflation declines in August
Harmonized inflation fell to 2.2% in August from July’s 2.6%. August’s figure represented the smallest increase since July 2021 and...