Santiago de Chile, 17 Aug. The basic food basket in Chile exceeded 58,000 pesos (about 645 dollars) for the first time in July, which represents a year-on-year increase of 20.6%, the highest since records are available, the Government reported on Wednesday.
The Ministry of Social Development, which has been measuring this index since 2013, published in a new report that the basket became more expensive by 2.7% in the seventh month of the year, above the Consumer Price Index (CPI), which registered a monthly variation of 1.4% in July.
The figure is also higher than the one recorded last month by the food and non-alcoholic beverage division of the CPI, which includes other products: 1.9% monthly and 19.4% year-on-year.
84% of the 80 products that make up the basic food basket suffered an increase in their prices and, on average, they did so by 2.9%.
The main increases in the basket were carried out by bananas, carrots and hake, according to the report.
The basic basket is one of the variables used by the Ministry to set the poverty and extreme poverty line, which in July rose to 205,176 pesos (about 228 dollars) and 136,784 pesos (about 152 dollars), respectively, which implies a monthly variation of 2% and year-on-year variation of 15% in both indicators.
Inflation has been skyrocketing in Chile for months and in July it accumulated an increase of 8.5% so far this year and 13.1% in 12 months, the maximum since 1994.
Chile closed 2021 with an inflation of 7.2%, the highest in 14 years, which led the Central Bank to take unprecedented measures and quickly withdraw the monetary stimulus that it applied with the start of the pandemic, in March 2020.
In July, the Central Bank increased the Monetary Policy Rate by 75 basis points to take it to 9.75%, its highest value in two decades, in an attempt to curb the escalation of domestic prices.
The growth estimates of the Chilean GDP for this year of the issuer are between 1.5% and 2.25%.