SANTIAGO – At lunchtime in central Santiago, dozens of establishments near Plaza de Armas are serving one of Chile’s most widely shared comfort foods: the “completo.”
For generations, the country’s distinctive hot dog has been an inexpensive staple across social and economic classes. But with living costs climbing and the economy losing momentum, even this modest meal is becoming more expensive.
“Not long ago, I paid 2,500 pesos ($2.60) for a completo,” said Antonia Bravo, a 21-year-old student. “Now, they cost 3,500 or 4,000 pesos ($3.60 or $4.10).”
Official figures released this month showed Chile nearing recession after recording economic contraction for two consecutive quarters. Unemployment climbed to 9.5%, its highest rate in five years, while annual inflation reached 4.1% over the past 12 months, driven in part by higher food and transportation costs.
Against that backdrop, Chile’s Central Bank lowered its 2026 growth forecast from an earlier range of 1% to 1.75% to between 0.25% and 0.75%.
“We cannot rule out the possibility that the current weakness may prove more persistent than anticipated,” Central Bank President Rosanna Costa said at a news conference last week.
Eating out has become a luxury for many
The completo originated at a small downtown Santiago shop in the early 1930s. Chile’s take on the hot dog combines a sausage with sauerkraut, tomato and homemade potato-based mayonnaise. Avocado and other toppings were added later, turning the dish into a more substantial meal—and giving it the name “completo.”
“Back then, people weren’t well-off; they didn’t have many resources and would come here for completos,” said Guillermo Cid, manager of the restaurant credited with creating the dish. “It is the same today. Instead of sitting down for a full meal, many people just stop by for a completo.”
Chile’s monthly basic food basket cost just under $100 in August, a 5% increase from a year earlier, according to the Ministry of Social Development. The country’s monthly minimum wage is approximately $580. Fuel prices have also risen as a result of the U.S.-Iran war.
Together, those pressures “feed into inflation and erode household purchasing power,” creating conditions in which “confidence… deteriorates,” Costa said.
As household budgets come under strain, Chileans are searching for ways to make their incomes last longer, including by reducing spending on food.
“The price of basic products just keeps going up and up,” said Mauricio Aravena, a 30-year-old teacher. “Eating out has always been somewhat of a luxury, but now even more so.”
Even meeting friends for an evening has increasingly come to feel like an extravagance.
“Compared to last year, when my friends and I could plan more outings, these days it’s more about staying in and cooking at home,” said Tabata Martinich, 31, who is also a teacher. “You have to watch your spending more closely; everything is way more expensive.”
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Workers say their incomes are failing to keep up with inflation.
“Bills are more expensive overall, and pay raises aren’t keeping up with those costs,” Aravena said. “We are lagging about five years behind.”
Frustration is on the rise
Since taking office in March, President José Antonio Kast has promoted an economic recovery program designed to attract investment and create jobs as Chile’s economy and labor market weaken. His challenge will be ensuring that the reforms improve not only headline economic figures but also the finances of ordinary citizens.
“Expectations are turning into frustration,” analyst Guillermo Holzmann said. “Despite progress in approving major projects, the investments have not materialized at the pace needed.”
Kast recently acknowledged the situation, saying Chile is “facing higher inflation than expected and lower growth than projected.”
At a meeting Tuesday with ministers and leaders of parties in the ruling coalition, Kast instructed his team to draft a “labor emergency plan” that should be presented in the coming weeks — although he did not provide details. The plan follows several other measures announced recently — including the economic and tax overhaul, which was approved by Congress but has yet to be ratified as the Constitutional Court reviews complaints filed by opposition parties.
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 “right to financial oblivion” for old debts in new credit assessments and bans the charging of interest on interest.
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 that have a direct impact on citizens’ pockets. “Making ends meet is becoming increasingly difficult,” he said.
“There is a disconnect between consumers’ income levels and the prices of products in stores,” he added. “Social frustration is the primary breeding ground for unrest in a country.”
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