Ecuador: Consumer prices fall at weaker rate in May
June 4, 2021
Consumer prices rose 0.08% over the previous month in May, moderating from the 0.35% print in April. May’s softer increase in prices was largely attributed to easing price pressures for transportation.
Meanwhile, consumer prices declined 1.1% in annual terms in May, above April’s 1.5% drop. Meanwhile, the annual average variation in consumer prices deteriorated, coming at minus 0.9% in May, following April’s minus 0.7%.
Commenting on the outlook for inflation, analysts at EIU, said:
“Although we expect inflation to return in 2021, consumer prices pressures will be extremely weak. We forecast that inflation will end the year at just 0.4%, reflecting a weak recovery in domestic demand. [...] Dollarisation will play a major role in containing inflation, but the economy will remain vulnerable to food and energy price shocks.”