Chile's June CPI holds steady at 0% amid mixed price movements

Chile's consumer price index (CPI) showed no month‑on‑month change in June, keeping the annual inflation rate at 4.3% and a year‑to‑date rise of 2.8%. The government highlighted the stability while noting that essential food items, especially bread, increased 4.5% and contributed to household budget pressure. Analysts attributed the flat CPI to a drop in fuel prices offset by higher food costs, with the transport category falling 1.3% and gasoline down 2.5%.

Economists warned that external shocks could reverse the trend. Following U.S. President Donald Trump's statement ending the cease‑fire with Iran, Brent crude rose over 5%, raising concerns that Chilean gasoline prices could spike and lift inflation in July. The central bank is expected to keep the policy rate at 4.5% through year‑end, while the market projects inflation near 3.8% by 2026.