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Chile's July Inflation Slows to 3.5% as Fuel Prices Drop
Chile's consumer price index (CPI) rose 0.1% in July, bringing the 12‑month inflation rate down to 3.5%, a decline from 4.3% in June. The slowdown was driven primarily by a sharp fall in transport costs: petrol prices fell 8.5%, diesel 13.5% and air‑fares 9.4%, which together removed about 0.47 percentage points from the index.
Food and housing costs continued to rise, each up 0.7% in the month, while electricity increased 2.4% after a tariff reset and rent rose 0.6%. The Central Bank of Chile, which targets 3% inflation with a 2‑4% tolerance band, kept its policy rate at 4.5% and noted that inflation has re‑entered the target range for the first time since May. Officials expect inflation to move closer to the 3% goal by the second quarter of 2027, although international oil market dynamics and Middle‑East tensions remain a risk.
The National Statistics Institute (INE) released the figures on Friday, confirming that the modest monthly rise was in line with market expectations. While the headline rate is now within the central bank’s band, prices remain above the official target, indicating that the easing may be fragile.
Entities
Central Bank of Chile · Chile · Consumer Price Index (CPI) · National Statistics Institute (INE) · UF (Unidad de Fomento) · fuel prices
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] Food and housing prices rose 0.7% in July 2026 in Chile. www.riotimesonline.com
- [● 3 SOURCES] June 2026 annual inflation in Chile was 4.3%. extra.com.co · www.hsbnoticias.com · www.riotimesonline.com
- [○ 1 SOURCE] The UF unit rose to 40,885 Chilean pesos (about US$45) by early September 2026. www.riotimesonline.com
- [● 3 SOURCES] Chile's CPI increased 0.1% month‑on‑month in July 2026. extra.com.co · www.hsbnoticias.com · www.riotimesonline.com
- [● 3 SOURCES] Annual inflation over the twelve months ending July 2026 was 3.5% in Chile. extra.com.co · www.hsbnoticias.com · www.riotimesonline.com
- [○ 1 SOURCE] In July 2026, Chile's petrol prices fell 8.5%, diesel fell 13.5% and air‑fares fell 9.4%. www.riotimesonline.com
- [○ 1 SOURCE] Chile's central bank policy rate remained at 4.5% after the July 28 meeting. www.riotimesonline.com
- [● 2 SOURCES] Chile's central bank expects inflation to return to near 3% by the second quarter of 2027. extra.com.co · www.hsbnoticias.com