The inflation rate in El Salvador at the end of October 2023 is at 2.66; it is 0.36 or 11.92% lower than the 3.02 it closed the previous month. October 2023 is the first month of this year the rate has been under 3.0; it is also the lowest rate since June 2021.
El Salvador started the year with high inflation and closed October with a year-on-year inflation rate of 2.66; it is -4.66 or 63.66% lower than the 7.32 it closed in December 2022.
The Salvadoran inflation rate is in a downtrend, reaching 14 consecutive months, maintaining the same rate or decreasing.
| 2019 | 2020 | 2021 | 2022 | 2023 | Change from previous month |
|
|---|---|---|---|---|---|---|
| January | 0.25 | -0.08 | 0.31 | 6.48 | 7.03 | -0.29 (-3.96%) |
| February | 0.35 | -0.39 | 1.06 | 6.67 | 6.82 | -0.21 (-2.99%) |
| March | 0.68 | -0.53 | 1.77 | 6.69 | 6.06 | -0.76 (-11.14%) |
| April | 0.80 | -1.05 | 2.79 | 6.55 | 5.44 | -0.62 (-10.23%) |
| May | 0.80 | -0.95 | 2.59 | 7.48 | 4.41 | -1.03 (-18.93%) |
| June | 0.53 | -0.23 | 2.59 | 7.76 | 3.78 | -0.63 (-14.29%) |
| July | 0.13 | -0.06 | 3.43 | 7.42 | 3.34 | -0.44 (-11.64%) |
| August | -0.49 | -0.30 | 4.30 | 7.66 | 3.09 | -0.25 (-7.49%) |
| September | -0.68 | -0.39 | 4.97 | 7.49 | 3.02 | -0.07 (-2.27%) |
| October | -0.87 | -0.21 | 5.49 | 7.47 | 2.66 | -0.36 (-11.92%) |
| November | -0.58 | -0.18 | 6.20 | 7.32 | ||
| December | 0.00 | -0.09 | 6.11 | 7.32 |
SEE ALSO: El Salvador’s Basic Food Basket Cost
With 5.91, food and non-alcoholic beverages present the highest accumulated inflation rate of the Consumer Price Index (CPI).
The food and non-alcoholic beverages inflation rate is not good news for Salvadorans, especially those facing economic challenges. This inflation will most likely increase the country’s essential food basket cost.
| Dec 2022 |
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Change YTD |
|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| General Index | 7.32 | 7.03 | 6.82 | 6.06 | 5.44 | 4.41 | 3.78 | 3.34 | 3.09 | 3.02 | 2.66 | -4.66 (-63.66%) |
| Food and non-alcoholic beverages | 12.24 | 12.22 | 12.61 | 11.62 | 10.36 | 8.35 | 6.93 | 6.40 | 6.11 | 5.98 | 5.91 | -6.33 (-51.72%) |
| Alcoholic beverages, tobacco | 4.28 | 5.58 | 4.84 | 3.82 | 4.30 | 5.41 | 5.08 | 3.90 | 4.48 | 4.15 | 3.50 | -0.78 (-18.72%) |
| Clothing and footwear | 4.17 | 3.95 | 2.89 | 2.38 | 2.49 | 1.90 | 1.63 | 1.33 | 1.02 | 1.36 | 1.08 | -3.09 (-74.10%) |
| Accommodation, water, electricity, gas, and other fuels |
2.32 | 2.12 | 2.46 | 2.52 | 2.21 | 1.98 | 1.75 | 1.35 | 1.24 | 1.35 | 0.64 | -1.68 (-72.41%) |
| Furniture, household items, and ordinary household maintenance |
8.33 | 7.13 | 5.29 | 3.76 | 3.40 | 1.46 | 0.24 | -0.48 | -1.17 | -1.39 | -1.03 | -9.36 (-112.36%) |
| Health | 2.40 | 2.57 | 2.8 | 3.15 | 3.16 | 3.17 | 2.90 | 3.30 | 3.23 | 3.11 | 2.88 | 0.48 (20.00%) |
| Transportation | 5.14 | 5.07 | 4.01 | 1.52 | 1.09 | 0.24 | 0.91 | 0.69 | 1.59 | 2.05 | 0.30 | -4.84 (-94.16%) |
| Communications | -0.96 | -0.96 | -1.47 | -1.60 | -1.58 | -1.66 | -1.78 | -1.60 | -2.01 | -1.47 | -1.88 | -0.92 (-95.83%) |
| Recreation and culture | 8.02 | 5.84 | 5.15 | 4.71 | 3.07 | 1.91 | 1.26 | -0.08 | -1.00 | -1.63 | -2.18 | -10.20 (-127.18%) |
| Education | 1.55 | 1.5 | 1.5 | 1.50 | 1.50 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -1.55 (-100%) |
| Restaurants and hotels | 8.13 | 7.26 | 7.4 | 7.25 | 7.60 | 7.52 | 7.01 | 6.69 | 6.53 | 6.26 | 6.67 | -1.46 (-17.96%) |
| Miscellaneous goods and services | 9.87 | 10.03 | 9.23 | 8.67 | 7.33 | 6.73 | 5.87 | 5.13 | 3.61 | 2.88 | 2.37 | -7.50 (-75.99%) |
The October 2023 Salvadoran food and non-alcoholic beverage inflation rate is the lowest since the 3.94 of September 2021.
| 2019 | 2020 | 2021 | 2022 | 2023 | Change from previous month |
|
|---|---|---|---|---|---|---|
| January | 0.82 | 1.28 | 0.12 | 8.95 | 12.22 | -0.02 (-0.16%) |
| February | 0.93 | 0.91 | 0.73 | 9.45 | 12.61 | 0.39 (3.19%) |
| March | 1.22 | 1.07 | 1.15 | 9.81 | 11.62 | -0.99 (-7.85%) |
| April | 1.70 | 2.08 | -0.04 | 10.89 | 10.36 | -1.26 (-10.48%) |
| May | 2.34 | 2.26 | -0.87 | 13.28 | 8.35 | -2.01 (-19.40%) |
| June | 2.81 | 2.88 | -1.02 | 14.37 | 6.93 | -1.42 (-17.01%) |
| July | 1.61 | 3.30 | -0.07 | 14.19 | 6.40 | -0.53 (-7.65%) |
| August | -0.02 | 2.10 | 2.11 | 14.50 | 6.11 | -0.29 (-4.53%) |
| September | -0.16 | 1.43 | 3.94 | 13.55 | 5.98 | -0.13 (-2.13%) |
| October | 0.71 | 0.67 | 6.07 | 12.82 | 5.91 | -0.07 (-1.17%) |
| November | 0.76 | 0.62 | 7.42 | 12.06 | ||
| December | 1.20 | 0.37 | 7.96 | 12.24 |
The inflation rate problem of 2023 is a global issue and is not isolated to El Salvador. Due in large part to the measures implemented by the Nayib Bukele administration in 2022, the Salvadoran inflation rate continues to be one of the lowest in Latin America.
One of the most significant measures established by the government was to create the Special Transitory Law to Set Maximum Fuel Prices, which allowed the cost of gasoline to be stable and the increase not to be transferred to the population.
It is extremely encouraging that our country remains one of the three countries with the lowest inflation in Latin America.” Finance Minister Alejandro Zelaya.
