The Consumer price inflation in Chile attained a value of 7.59 % in 2023
The indicator recorded a historical change (bps difference) of 454 bps between 2020 to 2023, and is expected to decline by...
GlobalData projects the figure to change by 81 bps between 2024 and 2028, reaching...
Inflation
A rise in the cost of goods and services in an economy that results in a loss of the currency's buying power is known as inflation. It is computed as the rate at which prices changed during a given time. One of the most used metrics for gauging inflation in an economy is the consumer price index (CPI).
Global Inflation
Global inflation is a measure of the average annual rate of growth increase in national prices across all countries. It can be calculated using various methods including simple average, weighted average, and median price change. The global inflation rate is projected to rise to 6.5% in 2022 from 3.5% in the previous year due to supply chain disruption amid the Ukraine-Russia war. While most countries saw a rise in their annual inflation rate between 2021 and 2022, some of the highest rates of increase have been in Europe, Brazil, Turkey, the United States, and Israel. By June 2022, nearly half of Eurozone countries had double-digit inflation, and the region reached an average inflation rate of 8.6%, the highest since its formation in 1999.
Consumer Price Inflation in Chile
Between 2018-2021, the consumer price inflation in Chile was highest in the year 2021, reaching 4.5%, an increase of 0.4% over the previous year 2020. Between 2018 to 2021, Chile’s consumer Inflation increased by 0.9%.
The inflation rate shot up to 4.5% in 2021 due to supply chain constraints and lockdowns amid pandemics. High energy prices and supply chain constraints amid the Russia-Ukraine war have led to inflationary pressures. The central bank followed a tight monetary policy to tame the high inflation rate. Commodity prices are rising and GlobalData forecasts the inflation rate to rise to 6.9% in 2022.
However, a persistently high inflation rate, along with an increase in energy price, will likely cause Chile’s economic growth to slow down in 2022. The central bank adopted a tighter monetary policy by raising borrowing costs to tackle the inflation rate.
Factors that Impact Inflation Rate
Some of the major factors affecting consumer prices are government policies, money supply, consumer spending, employment levels, high disposable income, and wage levels. Interest rates can also have a significant impact on spending on consumer goods.
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