{"id":854309,"date":"2026-09-20T12:18:14","date_gmt":"2026-09-20T12:18:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/854309\/"},"modified":"2026-09-20T12:18:14","modified_gmt":"2026-09-20T12:18:14","slug":"in-chile-even-beloved-hot-dogs-feel-the-economic-squeeze","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/854309\/","title":{"rendered":"In Chile, even beloved hot dogs feel the economic squeeze"},"content":{"rendered":"

SANTIAGO, Chile — It is lunchtime in downtown Santiago, and dozens of businesses around the Plaza de Armas are serving up one of Chile\u2019s<\/a> most democratic specialties: the \u201ccompleto.\u201d<\/p>\n

For decades, the country\u2019s version of the hot dog<\/a> has been one of the most affordable foods enjoyed across social classes. But as the cost of living rises and the economy struggles, even the humble snack is feeling the impact.<\/p>\n

“Not long ago, I used to pay 2,500 pesos ($2.60) for a completo,” said Antonia Bravo, a 21-year-old student. \u201cNow, they cost 3,500 or 4,000 pesos ($3.60 or $4.10).\u201d<\/p>\n

Official data released this month confirmed that Chile is on the brink of recession after two consecutive quarters of economic contraction. Unemployment rose to 9.5% \u2014 the highest level in five years \u2014 while annual inflation accelerated to 4.1% in the past 12 months as food and transportation prices increased<\/a>.<\/p>\n

The weak outlook prompted Chile’s Central Bank to cut its 2026 growth forecast \u2014 from the previously projected 1%\u20131.75% range to 0.25%\u20130.75%.<\/p>\n

\u201cWe cannot rule out the possibility that the current weakness may prove more persistent than anticipated,\u201d Central Bank President Rosanna Costa warned at a news conference last week.<\/p>\n

The completo was born in one of those small shops in downtown Santiago in the early 1930s. Chile\u2019s take on the hot dog features a sausage topped with sauerkraut, tomato and homemade potato-based mayonnaise. Avocado and other ingredients<\/a> were added over time, turning it into a complete meal. Hence its name, \u201ccompleto.\u201d<\/p>\n

\u201cBack then, people weren\u2019t well-off; they didn\u2019t have many resources and would come here for completos,\u201d said Guillermo Cid, manager of the restaurant credited with creating the dish. \u201cIt is the same today. Instead of sitting down for a full meal, many people just stop by for a completo.”<\/p>\n

Chile’s monthly basic food basket cost just under $100 in August, up 5% from a year earlier, according to the Ministry of Social Development. The country’s monthly minimum wage is about $580. Chile has also faced rising fuel prices resulting from the U.S.-Iran war.<\/a><\/p>\n

Together, these pressures “feed into inflation and erode household purchasing power,\u201d creating a scenario where \u201cconfidence… deteriorates,\u201d the Central Bank president said.<\/p>\n

As the cost of living rises and household budgets tighten, Chileans are looking for ways to stretch their incomes by cutting spending on key areas, including food.<\/p>\n

\u201cThe price of basic products just keeps going up and up,\u201d said Mauricio Aravena, a 30-year-old teacher. \u201cEating out has always been somewhat of a luxury, but now even more so.\u201d<\/p>\n

Even a get-together with friends has become synonymous with extravagance.<\/p>\n

\u201cCompared to last year, when my friends and I could plan more outings, these days it\u2019s more about staying in and cooking at home,\u201d said Tabata Martinich, 31, also a teacher. \u201cYou have to watch your spending more closely; everything is way more expensive.\u201d<\/p>\n

Workers also say wages aren\u2019t keeping pace with inflation.<\/p>\n

\u201cBills are more expensive overall, and pay raises aren\u2019t keeping up with those costs,\u201d Aravena added. \u201cWe are lagging about five years behind.\u201d<\/p>\n

Since taking office in March, President Jos\u00e9 Antonio Kast<\/a> has pursued an economic recovery agenda aimed at boosting investment and employment, as Chile’s economy and labor market weaken. His challenge is ensuring that these reforms not only translate into stronger economic indicators but also reach citizens\u2019 pockets.<\/p>\n

\u201cExpectations are turning into frustration,\u201d analyst Guillermo Holzmann said. \u201cDespite progress in approving major projects, the investments have not materialized at the pace needed.\u201d<\/p>\n

Kast recently acknowledged the situation, saying Chile is \u201cfacing higher inflation than expected and lower growth than projected.\u201d<\/p>\n

At a meeting Tuesday with ministers and leaders of parties in the ruling coalition, Kast instructed his team to draft a \u201clabor emergency plan\u201d that should be presented in the coming weeks \u2014 although he did not provide details. The plan follows several other measures announced recently \u2014 including the economic and tax overhaul<\/a>, which was approved by Congress but has yet to be ratified as the Constitutional Court reviews complaints filed by opposition parties.<\/p>\n

The proposed reform includes initiatives such as tax cuts for large corporations, the elimination of double taxation to encourage more private investment, and the implementation of financial compensation for companies whose projects are rejected due to environmental concerns. It also establishes the \u201cright to financial oblivion\u201d for old debts in new credit assessments and bans the charging of interest on interest.<\/p>\n

Holzmann said the worsening economic conditions are pushing the Kast administration to race against the clock to translate medium- and long-term initiatives into concrete actions<\/a> that have a direct impact on citizens\u2019 pockets. \u201cMaking ends meet is becoming increasingly difficult,\u201d he said.<\/p>\n

\u201cThere is a disconnect between consumers\u2019 income levels and the prices of products in stores,\u201d he added. \u201cSocial frustration is the primary breeding ground for unrest in a country.\u201d<\/p>\n

_____<\/p>\n

Follow AP\u2019s coverage of Latin America and the Caribbean at https:\/\/apnews.com\/hub\/latin-america<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"SANTIAGO, Chile — It is lunchtime in downtown Santiago, and dozens of businesses around the Plaza de Armas…\n","protected":false},"author":2,"featured_media":854310,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[4,450,28,33357,9970,109,101,1904,793,451,2402,3,147,17807,452,453,965],"class_list":["post-854309","post","type-post","status-publish","format-standard","has-post-thumbnail","category-breaking-news","tag-breaking-news","tag-breakingnews","tag-business","tag-compensation-and-benefits","tag-consumer-prices","tag-economic-policy","tag-economy","tag-financial-services","tag-general-news","tag-headlines","tag-inflation","tag-news","tag-personal-finance","tag-recessions-and-depressions","tag-top-stories","tag-topstories","tag-world-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/854309","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=854309"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/854309\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/854310"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=854309"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=854309"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=854309"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}