Ecuador: Inflation jumps to two year high
September 7, 2011
In August, consumer prices jumped 0.48% over the previous month, which was well above the 0.18% increase observed in June. The monthly jump was driven entirely by higher prices for food and non-alcoholic beverages, as recent flooding in the Andean highlands damaged crops. As a result of the monthly rise, annual headline inflation climbed from 4.4% in July to 4.8% in August, which represented the highest inflation since May 2009. The Finance Ministry foresees inflation to reach 4.13% this year. Meanwhile, the Central Bank expects inflation to end the year at 3.7%.
Author: Ricardo Aceves, Senior Economist