Chile Inflation Expectations Spike to Highest Since March 2023

Chile’s one-year breakevens — a measure of inflation expectations — jumped to the highest since March 2023 on Friday after the government loosened a fuel stabilization mechanism, triggering a jump in gasoline prices.

One-year breakevens leaped almost 20 basis points Friday to 4.95%, and are up 238 basis points this month. The measure started climbing after the the US attack on Iran pushed up oil prices, and accelerated after Chile’s government allowed gasoline prices to rise by the most since at least 1980 on Thursday.