The Central Bank of Chile’s August 2026 Business Perceptions Report found that surveyed companies continued to report moderate and weaker than expected business performance as they absorbed the effects of the conflict between the United States and Iran. Higher fuel prices raised direct costs and fed through to transportation and other inputs, while weak demand limited firms’ ability to pass these increases on to customers, narrowing profit margins. Companies also perceived a deterioration in consumer expectations, with households becoming more cautious amid higher fuel prices and concerns about the domestic economy. The outlook for the remainder of 2026 remained favorable but uncertain and less optimistic than several months earlier. Respondents expected some cost pressures to ease as Middle East tensions abate, while the 2027 outlook was somewhat stronger on expectations of reduced uncertainty, greater clarity in the domestic political and legislative environment, progress on delayed investment projects and lower cost pressures.
Central Bank of Chile2026-08-06
Central Bank of Chile reports weaker than expected business performance as conflict-driven costs squeeze margins
The Central Bank of Chile reported moderate and weaker than expected business conditions, as conflict-related fuel and input costs combined with softer demand to squeeze company margins. Firms remained positive but less optimistic about the rest of 2026 and expected a somewhat better outlook in 2027 as uncertainty and cost pressures ease.