The cost of living in Chile continues to rise. And it’s not just a saying. In fact, the National Institute of Statistics (INE) reported that the Consumer Price Index (CPI) rose 1.4% in April, above what was expected by a majority in the market (1%) and, with it, the increase in twelve months climbed to 10.5%, the first double-digit record not seen since 1994.
According to the report, ten of the twelve divisions that make up the IPC basket recorded increases, one fell and one had no incidence. The strong advance in inflation led the Central Bank Council to decree on Thursday a 125 bp increase in the Monetary Policy Rate (MPR), to bring it to 8.25%, also above what was expected by the consensus of analysts.
The INE indicated that among the divisions with increases in their prices, food and non-alcoholic beverages (2.3%) and recreation and culture (2.9 percent) stood out. Of the 76 products that make up the first group, 56 presented increases in their prices, the most relevant being vegetable oil (24.7%), followed by bread (2.9 percent).
Given this result, food and non-alcoholic beverages rise with an inflation of 14.8% in the last year. In recreation and culture, very much in line with the effects of what has been the reopening of the economy, 20 products registered increases in their prices, highlighting tourist packages (14.9%) and gyms (4.4 percent).
Also consistent with the lack of confidence in the country’s economy, the restaurant and hotel division registered a price increase of 2 percent. In 12 months, its rise reaches 14.7 percent. According to the INE bulletin, transport is the division that exhibits the most important increase in the last year, which reaches 21.4 percent.
This, after last month its prices rose 1.2%, standing out the 3.3% that gasoline rose. This product shows a jump of 30.3% in twelve months, consistent with the pressure derived from abroad, where oil prices have skyrocketed after the conflict between Russia and Ukraine. To this has been added the increase in the dollar.
The Economy Minister, Nicolás Grau, stressed that inflation corresponds to a global phenomenon, as a consequence of the logistical problems that are being experienced and the war in Ukraine, in addition to the uncertainty that has affected the exchange rate.
Clothing and footwear was the only division that reported casualties in April.