Ecuador: Consumer prices on annual basis continue to decline
September 6, 2018
Consumer prices rose 0.27% over the previous month in August after coming in flat in July. Seven out of the 12 sub-components registered higher prices, four of them saw a decline in prices and the remaining category came in flat. Prices for food and non-alcoholic drinks increased the most, while prices for clothing and footwear fell the most. Meanwhile, prices for alcoholic beverages and tobacco were stable from the previous month.
On an annual basis, consumer prices declined 0.3% in August, marking a smaller drop than the 0.6% year-on-year decline recorded in July. Annual variation in consumer prices inched down to minus 0.4% in August from minus 0.3% in July.
Ecuador Inflation Forecast
Panelists participating in the LatinFocus Consensus Forecast expect inflation of 0.7% in 2018, which is down 0.1 percentage points from last month’s estimate. The panel projects inflation accelerating to 1.7% at the end of 2019.
Author: Nihad Ahmed, Economist