Chile’s annual inflation rate reaches highest level in 30 years

Chile’s Consumer Price Index (CPI) registered a monthly increase of 1.2% in August, growing 14.1% year-on-year, a level not seen since 1992, the National Statistics Institute (INE) announced.

“In August, the consumer price index registered a monthly increase of 1.2 percent, making it 9.9 percent higher so far this year and 14.1 percent higher in the last 12 months,” the agency said.

According to INE, food and non-alcoholic beverages registered the highest price increases in July, with the most significant increases in meat, bread, and cereal products.

The transport sector also saw monthly price increases, with the following byproducts rising the most: Diesel oil and gasoline.

Housing rents, housing repairs, and drinking water services also increased.

The Central Bank issued a report this week stating that the consumer price index has increased this year due to external factors, such as the conflict between Russia and Ukraine, but also internal factors, such as the devaluation of the peso and the decline in investment, and predicted that cumulative inflation would reach 12% by the end of 2022.

The central bank increased the interest rate by 100 basis points to 10.75% to curb inflation.

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