Chile's Hot Dog Prices Jump as Economy Contracts Twice

Chile is near recession after two consecutive quarters of economic contraction. Unemployment reached 9.5 percent, the highest in five years, and annual inflation accelerated to 4.1 percent. The Central Bank cut its 2026 growth forecast from 1%-1.75% to 0.25%-0.75%. Completo prices rose from about 2,500 pesos ($2.60) to 3,500 or 4,000 pesos ($3.60 or $4.10). Antonia Bravo said, "Not long ago, I used to pay 2,500 pesos ($2.60) for a completo. Now, they cost 3,500 or 4,000 pesos ($3.60 or $4.10)." The basic food basket cost just under $100 in August, up 5 percent year over year; the minimum wage is about $580. Fuel prices have risen resulting from the U.S.-Iran war. Rosanna Costa said the current weakness may prove more persistent than anticipated. José Antonio Kast, in office since March, said Chile is facing higher inflation than expected and lower growth than projected. Guillermo Holzmann said expectations are turning into frustration and investments have not materialized at the pace needed. Next, Kast ordered a labor emergency plan Tuesday with no details released, while a Congress-approved economic and tax overhaul awaits Constitutional Court review after opposition complaints.