Key Findings from the July 2025 CPI Report

The July report indicates broad-based price increases across most sectors of the Chilean economy. Twelve out of thirteen divisions within the consumer Price Index (CPI) basket contributed to the monthly increase. The primary drivers of inflation were the housing and basic services division, which rose by 1.5% and accounted for 0.275 percentage points of the overall increase, and the food and non-alcoholic beverages division, which increased by 0.9% and contributed 0.192 percentage points.

Other divisions also contributed positively,collectively adding 0.419 percentage points to the monthly inflation rate. Notably, the insurance and financial services division experienced a decrease of 0.5%, with an incidence of -0.005 percentage points, offering a slight offset to the overall inflationary trend.

Detailed Breakdown of Price Changes

• Housing and basic Services: Increased by 1.5%, representing the largest single contribution to the monthly CPI increase.
• Food and Non-Alcoholic Beverages: rose by 0.9%,significantly impacting household budgets.
• Insurance and Financial Services: Decreased by 0.5%, the only division to report a monthly price decline.
• Overall CPI: increased by 0.9% month-over-month, 2.8% year-to-date, and 4.3% over the past twelve months.

Understanding Chile’s Inflationary Landscape

Chile has experienced fluctuating inflation rates in recent years, influenced by global economic conditions, domestic policies, and supply chain disruptions. The country’s central bank, Banco Central de Chile, has implemented various monetary policy measures, including adjustments to the policy interest rate, to manage inflation and maintain price stability. The current inflationary pressures are being closely monitored by the Banco central de Chile, led by Governor Mario Marcel, to assess the need for further policy interventions.

Historically, Chile’s inflation has been sensitive to fluctuations in commodity prices, particularly copper, a major export for the nation. Global events, such as the COVID-19 pandemic and geopolitical tensions, have also played a role in shaping the country’s inflationary trends. Understanding these historical trends is crucial for interpreting current economic data and forecasting future price movements.

Frequently Asked Questions

what is the CPI? The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a basket of consumer goods and services.

where can I find the full report? The full July 2025 CPI bulletin, technical notes, and statistical data are available on the INE website: CPI Bulletin,