In downtown Santiago, Chile’s iconic “completo”—a local variation of the hot dog—is facing rising costs amid a deteriorating economic landscape. Once an affordable staple across social classes, the price of this popular snack has increased significantly in recent months, reflecting broader economic challenges affecting households nationwide.

Antonia Bravo, a 21-year-old student, noted that completos, which she used to buy for 2,500 pesos (approximately RM11), now cost between 3,500 and 4,000 pesos (about RM15 to RM17). This price hike coincides with official data indicating that Chile is nearing a recession after experiencing two consecutive quarters of economic contraction. Unemployment has climbed to 9.5%, the highest level in five years, while annual inflation has accelerated to 4.1%, driven in part by rising food and transportation costs.

The country’s Central Bank has downgraded its 2026 growth forecast to a range of 0.25% to 0.75%, down from an earlier projection of 1% to 1.75%. Central Bank President Rosanna Costa cautioned that economic weakness may persist longer than anticipated, with inflation and rising fuel prices—exacerbated by the ongoing US-Iran conflict—eroding consumer purchasing power and reducing public confidence.

The completo, created in the early 1930s in a small Santiago eatery, remains a symbol of accessible sustenance. The sandwich traditionally consists of a sausage topped with sauerkraut, tomato, and a homemade potato-based mayonnaise, with additions such as avocado turning it into a more substantial meal. Guillermo Cid, manager of the restaurant credited with inventing the dish, emphasized that the completo has historically served as a convenient and affordable meal option, a role it continues to fulfill today as many Chileans find it difficult to afford full meals.

Chile’s monthly basic food basket reached nearly US$100 (RM1,640) in August, marking a 5% increase from the previous year. For comparison, the country’s minimum monthly wage stands at around US$580 (RM2,348). Rising fuel prices and inflation have pressured household budgets, with many citizens adjusting spending habits to cope. Mauricio Aravena, a 30-year-old teacher, remarked that basic product prices are continuously rising and that wage growth has lagged behind inflation by roughly five years.

In response to these economic challenges, President Jose Antonio Kast, who assumed office in March, has prioritized economic recovery through policies aimed at stimulating investment and increasing employment. At a recent meeting with cabinet ministers and coalition leaders, Kast called for the development of a “labour emergency plan,” expected to be unveiled in the coming weeks, though specific details remain undisclosed.

This initiative builds on other recent measures, including a major economic and tax reform package approved by Congress but currently under review by the Constitutional Court following opposition complaints. The proposed reforms seek to include tax reductions for large corporations, the removal of double taxation to incentivize private investment, and compensation mechanisms for businesses affected by environmental project rejections.

As Chile navigates these economic headwinds, policymakers face the challenge of balancing growth stimulation with addressing inflationary pressures that continue to squeeze household finances across the country.