Ecuador: Inflation rises to 16-month high
July 7, 2011
In June, consumer prices remained virtually unchanged, rising 0.04% over the previous month, which was below the 0.35% increase registered in May. The monthly reading reflected lower prices for food and non-alcoholic beverages as well as for communications, which were offset by higher prices for clothing and footwear. Despite the subdued reading, annual headline inflation edged up from 4.2% in May to 4.3% in June, which marked the highest rate since February 2010. The Economic Policy Ministry raised its inflation projection for this year and expects annual consumer prices to reach 4.13%. Meanwhile, the Central Bank expects inflation to end the year at 3.7%.
Author: Ricardo Aceves, Senior Economist