El Salvador has achieved a remarkable milestone, becoming the country with the lowest year-on-year food inflation among a group of over 50 nations across America, Europe, and Asia. According to data released by the Organization for Economic Cooperation and Development (OECD), El Salvador’s food inflation rate dropped to -0.3% as of September, making it the only nation in the sample to register negative inflation in the food sector.
This deflationary trend, which reflects a general and prolonged decline in food prices, comes as a result of a series of government measures aimed at protecting families from rising food costs. El Salvador’s performance stands out significantly compared to other countries, with Israel recording the highest food inflation in the sample at 7.8%.
The figures reveal that, despite the global increase in food prices earlier this year, El Salvador has managed to control inflation in the food sector through a combination of strategic policies. President Nayib Bukele celebrated the achievement, attributing the positive results to the government’s proactive measures, which have been in place for just four months.
“We were told it was impossible, that we couldn’t lower food prices, and that our measures would lead to even higher prices and shortages. But we didn’t listen to the critics. And four months later, we achieved it: DEFLATION!” President Bukele declared on social media. “And there’s more to come.”
Since the beginning of the year, El Salvador has implemented a series of initiatives aimed at curbing food inflation, including the creation of agricultural markets across the country, tax exemptions for food products, and the opening of new supply centers. One of the most recent additions to these efforts was the inauguration of the Soyapango Supply Center, a key facility designed to help stabilize food prices by providing affordable goods to local communities.
In a move to further expand the reach of these measures, President Bukele announced the opening of five new agricultural markets in eastern El Salvador, located in the districts of Corinto, Anamorós, San Miguel, Jocoro, and Berlin. These new markets are expected to strengthen the government’s efforts to provide families with direct access to low-cost food, while also promoting local agriculture.
The results come just nine months after the government first began implementing these measures in response to global food price hikes earlier this year. With the country now experiencing deflation in the food sector, El Salvador is emerging as a notable success story in terms of economic management, especially in the context of a challenging global economic environment.
As the government continues to expand its efforts to support local agriculture and stabilize food prices, El Salvador is on track to maintain its position as a regional leader in combating food inflation and supporting the financial well-being of its citizens.