FX.co ★ Chile Inflation Rate Slows for 2nd Month

Chile's annual inflation rate eased slightly to 4.4% in May 2025, down from 4.5% in April. This marks the 17th consecutive month that inflation has exceeded the Chilean Central Bank's target range of 2% to 4%. The reduction in the inflation rate was primarily influenced by a slowdown in price growth across nine out of thirteen sectors. Notable declines were observed in the recreation and culture sector (down to 1.9% from 2.2%), home maintenance (dropping to 1.7% from 2.7%), and restaurants and hotels (falling to 6.4% from 6.7%). Transportation prices notably shifted into deflation, registering at -0.1% from a previous 0.4%. Conversely, there was a price uptick in the food and non-alcoholic beverages sector, rising to 4.6% from 4.4% in April, as well as in housing and public services, which increased to 10.9% from 10.6%. On a monthly basis, consumer prices grew by 0.2% in May, mirroring the 0.2% rise recorded in April, and consistent with market expectations.