Ecuador’s Inflation Rate Declines to Lowest Point Since June 2021

Ecuador’s inflation rate dropped to 0.25% in February 2025, the lowest since June 2021, down from 0.26% in January. Key contributors include rising costs in restaurants and hotels, while prices fell for clothing, footwear, and food. Monthly consumer prices increased by 0.09% following a decrease in January.

In February 2025, Ecuador’s annual inflation rate decreased to 0.25%, the lowest level recorded since June 2021. This marks a slight reduction from the previous month’s rate of 0.26%. The increase in inflation can be attributed mainly to higher expenses in the restaurant and hotel sectors, which rose to 2.88% compared to 2.74% in January.

Contrastingly, there was a reduction in prices for clothing and footwear (-1.11% versus -1.24%) and housing and utilities (-15.16% compared to -15.26%). This decline is linked to the recovery from hydroelectric power shortages that had prompted government subsidies for energy costs.

Food and non-alcoholic beverages experienced a slight decrease in prices, falling by -0.11% after an increase of 0.19% in January. Additionally, the growth in transportation costs slowed to 3.01% from 3.05%, while communications and recreation also showed a downward trend in price increases.

Ecuador’s inflation rate has shown significant improvement, with February 2025 marking the lowest rate since mid-2021. This decline results from various factors including increased costs in the hospitality sector while experiencing price cuts in clothing, housing, and food sectors. The overall economy appears to stabilize following previous shortages and the subsequent impact of government interventions.

Original Source: www.tradingview.com