Ecuador: Inflation climbs to highest level in more than two years
November 7, 2011
In October, consumer prices rose 0.35% over the previous months, which was less than half the 0.79% increase recorded in September. The monthly rise reflected higher prices for alcoholic beverages and tobacco as well as a moderate increase in prices for food and non-alcoholic beverages (September: 1.05% month-on-month; October: 0.22% mom). Annual headline inflation inched up from 5.4% in September to 5.5% in October, which marked the highest level since April 2009. The Central Bank expects inflation to end this year at 3.7%. However, in the 2012 budget draft the government projects that inflation will reach 5.4% in 2012.
Author: Ricardo Aceves, Senior Economist