SANTIAGO – Around lunchtime in central Santiago, dozens of restaurants and food stalls near Plaza de Armas are serving one of Chile’s most popular and accessible dishes: the “completo.”
For generations, Chile’s take on the hot dog has been an inexpensive staple enjoyed by people across the social spectrum. But with the cost of living climbing and economic growth faltering, even this modest meal is becoming more expensive.
“Until recently, 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 straight 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. The new estimate is between 0.25% and 0.75%, down from the earlier projection of 1% to 1.75%.
“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. The Chilean hot dog traditionally combines a sausage with sauerkraut, tomato and homemade potato-based mayonnaise. Over time, avocado and other toppings were added, transforming it into a more substantial meal—and giving rise to its name, “completo.”
“People didn’t have much money back then. They lacked resources and came here for completos,” said Guillermo Cid, manager of the restaurant credited with inventing the dish. “It’s the same today. Rather than sit down for a full meal, many people simply stop for a completo.”
Chile’s monthly basic food basket cost just under $100 in August, a 5% increase from the same month a year earlier, according to the Ministry of Social Development. The country’s monthly minimum wage stands at about $580. Fuel prices have also risen as a result of the U.S.-Iran war.
Those combined pressures “feed into inflation and erode household purchasing power,” creating conditions in which “confidence… deteriorates,” Costa said.
With everyday expenses rising and household budgets under strain, Chileans are seeking ways to make their incomes go further. Food is among the areas where many are cutting back.
“The cost of basic goods just keeps rising,” said Mauricio Aravena, a 30-year-old teacher. “Eating out was always something of a luxury, but now it feels even less affordable.”
Even meeting friends for a casual outing is increasingly seen as an indulgence.
“Last year, my friends and I could organize more outings. These days, we’re more likely to stay home and cook,” said Tabata Martinich, 31, another teacher. “You have to monitor your spending much more carefully because everything costs so much more.”
Workers also say their earnings have failed to keep up with inflation.
“Bills are more expensive across the board, and salary increases aren’t matching those costs,” Aravena said. “We are about five years behind.”
Frustration is on the rise
Since taking office in March, President José Antonio Kast has advanced an economic recovery plan focused on increasing investment and employment as Chile’s economy and labor market lose momentum. His central challenge will be making sure those reforms improve not only economic indicators but also the finances of ordinary households.
“Expectations are turning into frustration,” analyst Guillermo Holzmann said. “Although major projects are being approved, investment has not arrived at the pace required.”
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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