In Chile, even beloved hot dogs feel the economic squeeze
[September 21, 2026] By
NAYARA BATSCHKE
SANTIAGO, Chile (AP) — It is lunchtime in downtown Santiago, and dozens
of businesses around the Plaza de Armas are serving up one of Chile’s
most democratic specialties: the “completo.”
For decades, the country’s version of the hot dog 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.
"Not long ago, I used to pay 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 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% — the highest level in five years — while
annual inflation accelerated to 4.1% in the past 12 months as food and
transportation prices increased.
The weak outlook prompted Chile's Central Bank to cut its 2026 growth
forecast — from the previously projected 1%–1.75% range to 0.25%–0.75%.
“We cannot rule out the possibility that the current weakness may prove
more persistent than anticipated,” Central Bank President Rosanna Costa
warned at a news conference last week.
Eating out has become a luxury for many
The completo was born in one of those small shops in downtown Santiago
in the early 1930s. Chile’s take on the hot dog features a sausage
topped with sauerkraut, tomato and homemade potato-based mayonnaise.
Avocado and other ingredients were added over time, turning it into a
complete meal. Hence its 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, 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.
Together, these pressures "feed into inflation and erode household
purchasing power,” creating a scenario where “confidence...
deteriorates,” the Central Bank president said.
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.
“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 a get-together with friends has become synonymous with
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, also a teacher. “You have to watch your spending more
closely; everything is way more expensive.”
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A waitress carries a tray with "completos", traditional Chilean hot
dogs topped with mashed avocado, diced tomatoes and mayonnaise, past
a mural dedicated to the dish at the Ravera restaurant in downtown
Santiago, Chile, Thursday, Sept. 10, 2026. (AP Photo/Esteban Felix)
 Workers also say wages aren’t
keeping pace with inflation.
“Bills are more expensive overall, and pay raises aren’t keeping up
with those costs,” Aravena added. “We are lagging about five years
behind.”
Frustration is on the rise
Since taking office in March, President José Antonio Kast 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’ pockets.
“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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