Chile Forum

Just curious, in Korea now, inflation is pretty bad. Prices are sky rocketing for nearly everything. Right now, gas is about W1600/liter ($1.70) and food is rising fast. Last fall, you could get a large can of tuna for about 1000 won ($1.10) Now tuna is W1500 ($1.60). Milk, rice, kimche and sadly, beer! It's all rising fast.

So is the same thing happening in Chile? What does it take to live in say, the southern part of Chile/month? Do you save money or just keep your head above water? Can you do it on an English teacher's salary?

I dont think that situation is so serious in Chile, Inflation has increased -probably as everywere- but it is still controlled in the 3% range. Fuel and fossile are mostly responsible but Banco Central is doing a good job, most of prices I published several years ago at http://www.infoarica.cl/preciosexcel.html still applies

Personal data point:

In the past 6.5+ years, all the items I buy in the supermarkets have gone up in price from tens of pesos to hundreds of pesos or more depending on the item.

I would say in that time, not factoring in substitutions with cheaper products and some minor downsizing, my weekly expenses at the local markets have gone up around 19%.

In terms of utilities, only my phone/Internet bill has not gone up in relative price.

Factor in the weaker dollar (close to -30% to CLP from the highs of a couple of years ago) and you see how persons who earn and trust in dollars are being hit in-country.

Overall after some downsizing, being more utility conservationist-minded, eating a little less rico que los ricos and rearranging some of my US based expenses, I have calculated an overall increase in yearly living expenses of around 25% since the end of 2001.

Thank God for the protection of G&S and commodity specs and investments!!

I really wonder how the average chileno manages these increases on their low and stagnant salaries. I'm afraid many are beginning to do it on credit. The other week I was a first-hand witness to this as an old couple held up the line and had to leave behind three-fourths of a shopping cart's worth of food and goods when each had their Falabella cards declined for payment here at the largest supermarket in the area.

yea, Chileans are crazy with credit cards.

On the other hand, the credit system in Chile is very unforgiving to anyone that burns their credit cards. They will show up at your house and simply take everything away for auction. Chileans are very serious about keeping their credit in tack. The DECOM national credit system is all knowing.

We have seen likely around a 5-10% increase in prices for the basic basket of goods we buy, excluding food in the south. Food has moved more than 50%, but now has stabilized. In like Sept to October we seen some wild swings up words in prices.

We have given a couple of raises to our employees this year to help off-set the price increases. We mostly work on base wage, and then give bonuses as needed or earned. We also might give special projects to allow them to make more money, but still really earn the money.

It keeps temporary fluctuations in cost of living, turning in to permanent sorts of can not go back type raises that kill our overall costs of doing business. It also motives employees to do something to earn their money they need.

Transportation has gone up a lot. Collectives in Temuco went from 300 cpl a ride to 350 cpl a ride. The buses also raised their prices. For low income families that live outside of Temuco, but must work inside Temuco that is hard one.

We pay transportation for our employees to keep that from becoming a wage negotiation point. There is s tendency for a 50 peso rise in the price of a collective for it to snowball and get to translated in to our employees minds as a right to a 1000 peso an hour raise just to cover transportation.