Chile’s consumer prices rose slightly less than forecast last month despite another increase in fuel costs, as central bankers signal they’ll remain cautious on monetary policy.
Consumer prices gained 0.4% in September from August, below the 0.5% median forecast from analysts in a Bloomberg survey. Annual inflation stood at 4.1%, the national statistics agency reported on Thursday.
Chile central bankers led by Rosanna Costa see annual inflation slowing back to the 3% target by the second quarter of 2027. They are working to cool consumer price increases as high unemployment keeps a lid on demand. At the same time, the peso is hovering near the lowest level in over a year, pressuring import costs, while fuel continues to get more expensive at the pump.
Energy costs rose 1.9% on the month in September, while transportation increased 0.9% and food and non-alcoholic beverages gained 0.6%, the national statistics agency said. Insurance and financial service prices dropped 5.9%.
What Bloomberg Economics Says
“September CPI data signal lingering price pressures in Chile, with risks from external shocks to food and energy and rising labor costs in services. There’s little evidence that weaker activity and domestic demand are meaningfully easing inflation. That supports our expectations for the headline to remain elevated and the core to hover above 3% into year-end.”
— Felipe Hernandez, Latin America economist
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Chile’s finance ministry slashed its forecast for gross domestic product growth this year to 0.7% from 1.8% previously, according to a report published Tuesday. Officials raised their 2027 estimate to 3.3%, driven by investments.
Central bankers have kept borrowing costs at 4.5% so far in 2026, emphasizing that policy decisions will be made on a meeting-by-meeting basis. Traders surveyed last month by the monetary authority see rates on hold through the next two years.