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Original article: Inflación en Chile: IPC sube 0,2% en mayo y llega a 3,9% anual

In May, the Consumer Price Index (CPI) recorded a monthly variation of 0.2%, bringing the year-to-date inflation to 2.8% and the 12-month change to 3.9%, according to a report released on Monday by the National Statistics Institute (INE). This figure was influenced by rising costs in housing and transportation.

Out of the thirteen divisions that make up the CPI basket, nine experienced price increases during the fifth month of the year, while four reported decreases.

According to the INE; the largest upward pressures came from housing and basic services, which increased by 0.7%, contributing 0.123 percentage points (pp.) to the monthly variation, followed by transportation, which rose 0.6%, adding 0.083 pp. The other divisions with positive impacts collectively added 0.156 pp.

Within this category, gas was the primary contributor: liquefied gas prices surged 3.2% (a contribution of 0.048 pp.), while piped gas increased by 3.0% (0.063 pp.).

Meanwhile, rents rose by 0.3%, adding 0.020 pp.

In the transportation sector, air passenger fares led the increases with 8.3% (0.064 pp), particularly notable for international flights, which jumped 10.0% (0.052 pp.).

Gasoline prices also pushed upwards with a 0.7% increase (0.028 pp.), coinciding with the most significant fuel price adjustments in Chile in decades, following the government’s elimination of the Fuel Price Stabilization Mechanism (MEPCO), a move labeled the «gasoline hike«.

Conversely, the category of food and non-alcoholic beverages recorded the most significant decline, at -0.8%, which subtracted 0.178 pp. from the overall CPI. Ten of its fifteen classes saw price drops, led by bread, cereals, flours, and pasta (-2.1%, contributing -0.088 pp.) and fruits and nuts (-5.0%, with -0.079 pp.). Among the 81 products in this division, 52 saw prices decrease: bread fell by 4.0% (-0.085 pp.) and lemons plummeted by 17.2% (-0.029 pp.). Intercity bus transportation also recorded a substantial decline of 9.1% (-0.031 pp.).

Other notable price increases included beef (2.7%, with 0.061 pp.) and meals consumed in restaurants (1.0%, with 0.053 pp.). The Consumer Price Index excluding volatile items varied by 0.2% monthly, while the indicator that excludes food and energy rose by 0.4%.

Energy prices increased by 1.0% during the month, highlighting the ongoing pressure that fuels and basic services impose on Chilean households.

La entrada Chile’s Inflation Rises: Consumer Price Index Increases 0.2% in May, Annual Rate Reaches 3.9% se publicó primero en El Ciudadano.