Ecuador: Inflation decreases further in September
October 7, 2016
In September, consumer prices rose 0.15% over the previous month, contrasting August’s 0.16% decrease. The print mainly reflected solid increases in transport and education prices, which more than offset lower prices for food and non-alcoholic beverages. Still, the reading was the lowest for September in seven years.
Inflation has been falling since June 2015 and continued to do so in September, when it came in at 1.3%. The figure was a notch below August’s 1.4% reading and marked the lowest level of inflation since April 2005. Subdued demand and low global oil prices have weighed on consumer prices, while a dollarized economy and a strong base effect caused by the import tariffs introduced in March 2015 have kept prices in check. The annual average variation in consumer prices dropped to an over-eight-year low of 2.3% in September from 2.5% in August.
Author: David Ampudia, Economist