Government of Chile explains why bread does not drop in price despite the fact that wheat decreased its values

Published 2023년 6월 9일

Tridge summary

In May 2023, Chile experienced a slight decrease in inflation, with the twelve-month rate falling to 8.7% from 8.9% in April. The Consumer Price Index (CPI) also saw a minor increase of 0.1%, amounting to a cumulative rise of 2.3% over the past five months. This marks the second consecutive month of single-digit inflation.

The article highlights the complexities of Chile's inflation scenario, with some prices going down while others are increasing. Transportation costs have decreased, but there are concerns about rising prices for essential food items like eggs and bread. Egg prices have surged due to a reduction in the number of laying hens and the impact of avian flu. In contrast, bread prices have remained high, despite a decrease in wheat prices, a factor attributed to the winter rate still in effect. The government points to the 'Siembra por Chile' program as a positive influence, aiming to boost wheat production and lower flour prices. However, full impact on bread prices is yet to be seen.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Inflation in Chile continues to show signs of containment. In May 2023, it recorded a twelve-month variation of 8.7%; and the Consumer Price Index (CPI) had a monthly increase of 0.1%, accumulating an increase of 2.3% to the fifth month of the year. Although the indices continue at high levels, it was the second consecutive month with accumulated inflation in single digits. There are prices that have given pockets a break, such as those associated with intercity bus transport services: it reported a monthly decrease of 12.6%, registering a variation of -14.1% so far this year and 10.7% at twelve months. However, products such as eggs or bread show the opposite. In the case of eggs, there are several factors: the number of laying hens decreased by 5.9%, the production of both white and colored eggs suffered considerable decreases; and to this was added the avian flu. bread price Bread, a highly consumed product in Chile, has shown considerable price increases: in May it presented a ...

Source: Biobiochile