Chile’s inflation rate drops to 4.1% in June

Published 09/07/2025, 11:08
Chile’s inflation rate drops to 4.1% in June

Investing.com -- Chile’s Consumer Price Index (CPI) fell by 0.4% month-over-month in June, exceeding expectations of a 0.2% decline and marking a significant shift from the 0.2% increase recorded in May.

The unexpected deflation was attributed to low seasonality, decreasing food prices, and sales promotions during the country’s "Cyber day" shopping event.

Underlying inflation measures showed stability, with the Chilean Central Bank’s preferred measure of inflation excluding volatile items registering 0.0% month-over-month, down from 0.4% in the previous month. The three-month moving average for this measure was 0.3%, compared to 0.4% three months earlier.

Core inflation excluding food and energy prices decreased by 0.3% month-over-month, a notable reversal from the 0.3% increase seen in the prior month.

In annual terms, headline inflation declined to 4.1% in June from 4.4% in May, though it remains outside the central bank’s target band. Underlying inflation excluding volatile items rose to 3.8% from 3.6% year-over-year, influenced by a large drop in June 2023. Core inflation excluding food and energy increased to 4.0% from 3.7% on an annual basis.

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