El Salvador maintains a resounding reduction in inflation, with a rate of 3.04% in August of this year, solidifying its position among the least affected countries in the Central American region.
El Salvador continues to demonstrate a significant reduction in its inflation levels, which have been steadily declining since August 2022 when the measurement stood at 7.66%, according to statistics from the Central Reserve Bank (BCR).
With the August measurement of 3.04% this year, the country marks its twelfth consecutive reduction in this indicator.
Historical data reveals that in 2022, inflation in August was at 7.66%, September at 7.49%, October at 7.47%, and November and December at 7.32%.
This year, the downward trend persisted, with January at 7.03%, February at 6.82%, March at 6.06%, April at 5.44%, May at 4.41%, June at 3.78%, July at 3.34%, and finally, last month at 3.04%.
Furthermore, this trend of decreasing inflation levels places the country even below those of 2021, a year without the influence of the global inflation crisis. For instance, August’s record is lower than that of July 2021 when it was at 3.43%.
This deflationary process aligns with the BCR’s forecast at the end of 2022 that inflation would stabilize around 3% for this year. This is a result of the measures implemented by President Nayib Bukele’s government to curb the rise in international prices and a reduction in the intensity of global economic shocks.
Among the government’s measures, the temporary price fixing of electricity, fuels, and liquefied petroleum gas (LPG), tax exemptions on food and agricultural inputs imports, and a nationwide deployment of price inspections across the entire supply chain were highlighted.
Ricardo Salazar, President of the Consumer Protection Agency (DC), recently commented on the downward trend, emphasizing its significant impact on mass consumption products and services.
“We view this downward trend very positively. It particularly shows a downward trend in crucial areas such as electricity, water, gas, fuels, household items, telecommunications, recreation, and culture,” said the official to this media outlet.
These strategies played a crucial role in keeping the country among the least pressured in the Central American region amidst the price escalation recorded since 2022.
Currently, El Salvador ranks second lowest in inflation, behind Costa Rica, which reported an inflation rate of -1.87% for the eighth month of this year. Following closely are Guatemala at 4.47%, Honduras at 5.71%, and Nicaragua as the most affected Central American nation with a 7.58% inflation rate.
The Consumer Protection Agency reported that the government continues its coordinated effort of price inspections across all sectors of the supply chain, with 35,000 inspections conducted in the food and agricultural input sectors so far this year.
As a result of this work, the agency revealed that 56 suppliers have been fined for infractions such as unjustified price hikes and obstructing the agency’s work. These penalties amounted to fines totaling $229,000.