Ecuador: Consumer prices fall further in August
September 6, 2016
In August, consumer prices fell 0.16% over the previous month, the lowest reading in over three years. The print was below July’s 0.09% decrease and mainly reflected lower prices for food and non-alcoholic beverages, clothing and transport.
Inflation has been falling steadily since June 2015 and came in at 1.4% in August. The figure was below July’s 1.6% reading and marked the lowest level of inflation since April 2007. Consumer prices have deteriorated as a consequence of subdued demand and oil prices, while a strong base effect caused by the import tariffs introduced in March 2015 has also weighed on price growth. The annual average variation in consumer prices edged down to an over-eight-year low of 2.5% in August from 2.7% in July.
Author: David Ampudia, Economist