Transport costs fell 3.5% during July, subtracting 0.472 percentage points from the general index. Personal vehicle fuels declined 9.2%, driven by gasoline prices dropping 8.5% with a negative incidence of 0.317 points and diesel falling 13.5% with a 0.079-point impact. Gasoline prices have now decreased 16.5% over twelve months while diesel has fallen 22.9% year-to-date. Air passenger transport prices dropped 9.4% during the month, further contributing to the transport category’s downward pressure.
Food and non-alcoholic beverages increased 0.7% monthly, adding 0.153 points to overall inflation. Vegetables, legumes and tubers rose 2.6%, soft drinks climbed 3.6%, and seasonal fruits jumped 6.6%. Of 81 products in this category, 51 recorded price increases during July.
Housing and basic services rose 0.7%, contributing 0.120 points to the general index. Electricity supply increased 2.4% with a 0.079-point incidence, while rent payments advanced 0.6%, adding 0.042 points.
Ten of thirteen divisions within the representative basket generated positive incidences, two recorded declines, and one remained unchanged. Economy and Mining Minister Daniel Mas acknowledged the fuel price reduction significantly aided the index but noted electricity bills and food costs continue straining household budgets. The inflation relief follows June’s economic rebound after five consecutive months of contraction, though unemployment remains at its highest level in five years at 9.4%. The Trump administration recently included Chile in its latest tariff round, applying a 12.5% rate to multiple export categories despite the Kast government considering the U.S. a major commercial ally.
This article was curated and published as part of our South American energy market coverage.
