Ecuador: Inflation falls to over one-year low in April
Inflation came in at 2.4% in April, down from March’s 2.8%. April’s result represented the lowest inflation rate since December 2021. Looking at the details of the release, prices for transportation declined in April. In addition, inflation for food and non-alcoholic beverages slowed. Meanwhile, clothing and footwear prices fell at a faster rate.
Annual average inflation was unchanged at March’s 3.5% in April.
Finally, consumer prices increased 0.20% over the previous month in April, picking up from March’s 0.06% increase. April’s uptick was the highest reading since September 2022.
Commenting on the outlook, analysts at the EIU said:
“Twelve-month consumer price inflation will slow from an estimated 3.7% in December 2022 to 1.1% at end-2023. Supply-side pressures that built up during 2022 are easing as global demand cools and supply chains are repaired. However, global commodity markets will remain especially sensitive to one-off shocks in major producers, such as drought, flooding and natural disasters, the effects of which could pass through to the domestic economy quickly.”