Prices rise 0.2% in May in Chile, inflation stands at 3.9% year-on-year

Chile's inflation rate showed a slight increase in May, with the consumer price index rising by 0.2%. This brings the accumulated inflation for the year so far to 2.8%, while the annual inflation rate stands at 3.9%, according to the National Statistics Institute (INE).

The INE reported that nine of the thirteen divisions comprising the consumer price basket contributed positively to the monthly index variation. Among the products that saw the most significant price increases were beef, which rose by 2.7%, and food purchased in restaurants, cafes, and similar establishments, up by 1%. International air transport also experienced a notable increase of 10%, alongside a 3.2% rise in liquefied gas prices.

Conversely, some items saw price decreases. Bread prices fell by 4.0% and interurban bus transport by 9.1% in May. These figures follow substantial price adjustments in March and April, largely influenced by significant increases in fuel prices.

The government, under President José Antonio Kast, has enacted measures aimed at fiscal consolidation and economic stimulation. This includes a substantial increase in fuel prices and a plan to reduce fiscal spending by 6 billion. Additionally, a proposed economic and tax reform seeks to lower corporate taxes and encourage economic growth.