The inflation rate in El Salvador increased to 0.31% in January 2025, reflecting a slight increase in consumer prices sustained by increases in the restaurants and hotels divisions and the health sector.
The latest data from the Salvadoran Central Reserve Bank (BCR) indicates a 0.02 basis point increase compared to the 0.29% reported in December 2024.
However, the January rate is 0.89 percentage points lower than the 1.20% recorded in January 2024.
2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Change 2024-2025 |
|
---|---|---|---|---|---|---|---|---|
January | 0.25 | -0.08 | 0.31 | 6.48 | 7.03 | 1.20 | 0.31 | -0.89 (-74.17) |
February | 0.35 | -0.39 | 1.06 | 6.67 | 6.82 | 0.80 | ||
March | 0.68 | -0.53 | 1.77 | 6.69 | 6.06 | 0.77 | ||
April | 0.80 | -1.05 | 2.79 | 6.55 | 5.44 | 1.14 | ||
May | 0.80 | -0.95 | 2.59 | 7.48 | 4.41 | 1.42 | ||
June | 0.53 | -0.23 | 2.59 | 7.76 | 3.78 | 1.48 | ||
July | 0.13 | -0.06 | 3.43 | 7.42 | 3.34 | 1.78 | ||
August | -0.49 | -0.30 | 4.30 | 7.66 | 3.09 | 1.17 | ||
September | -0.68 | -0.39 | 4.97 | 7.49 | 3.02 | 0.58 | ||
October | -0.87 | -0.21 | 5.49 | 7.47 | 2.66 | -0.07 | ||
November | -0.58 | -0.18 | 6.20 | 7.32 | 2.11 | -0.31 | ||
December | 0.00 | -0.09 | 6.11 | 7.32 | 1.23 | 0.29 |
SEE ALSO: El Salvador’s Basic Food Basket Cost
As of January of this year, the highest inflation rate belongs to Restaurants and Hotels, standing at 3.98%; it is followed by the health sector with a rate of 2.35%.
Five of the 12 divisions that make up the Consumer Price Index CPI achieved deflation compared to the previous month, with the alcoholic beverages and tobacco sector seeing the largest decline at -0.42 percentage points.
Dec 2024 | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
General Index | 0.29 | 0.31 | |||||||||||
Food and non-alcoholic beverages | -0.47 | -0.49 | |||||||||||
Alcoholic beverages, tobacco | 1.21 | 0.79 | |||||||||||
Clothing and footwear | 0.09 | 0.14 | |||||||||||
Accommodation, water, electricity, gas, and other fuels |
2.07 | 1.97 | |||||||||||
Furniture, household items, and ordinary household maintenance |
-2.18 | -1.91 | |||||||||||
Health | 2.30 | 2.35 | |||||||||||
Transportation | -1.58 | -1.65 | |||||||||||
Communication | -0.39 | -0.73 | |||||||||||
Recreation and culture | -2.51 | -2.02 | |||||||||||
Education | 0.43 | 0.43 | |||||||||||
Restaurants and hotels | 3.86 | 3.98 | |||||||||||
Miscellaneous goods and services | 1.31 | 1.37 |
The food and non-alcoholic beverages rate is crucial as it directly impacts the cost of El Salvador’s essential food basket, affecting household budgets and overall economic stability, especially for low-income families.
The inflation rate for food and non-alcoholic beverages in El Salvador decreased by 4.09% since the end of January 2024, reflecting a 113.61% decline over the past 12 months. This decrease is good news for Salvadorans.
2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Change 2024-2025 |
|
---|---|---|---|---|---|---|---|---|
January | 0.82 | 1.28 | 0.12 | 8.95 | 12.22 | 3.60 | -0.49 | -4.09 (-113.61) |
February | 0.93 | 0.91 | 0.73 | 9.45 | 12.61 | 2.15 | ||
March | 1.22 | 1.07 | 1.15 | 9.81 | 11.62 | 2.21 | ||
April | 1.70 | 2.08 | -0.04 | 10.89 | 10.36 | 2.34 | ||
May | 2.34 | 2.26 | -0.87 | 13.28 | 8.35 | 2.71 | ||
June | 2.81 | 2.88 | -1.02 | 14.37 | 6.93 | 3.63 | ||
July | 1.61 | 3.30 | -0.07 | 14.19 | 6.40 | 4.53 | ||
August | -0.02 | 2.10 | 2.11 | 14.50 | 6.11 | 3.12 | ||
September | -0.16 | 1.43 | 3.94 | 13.55 | 5.98 | 1.21 | ||
October | 0.71 | 0.67 | 6.07 | 12.82 | 5.91 | -0.34 | ||
November | 0.76 | 0.62 | 7.42 | 12.06 | 4.70 | -0.70 | ||
December | 1.20 | 0.37 | 7.96 | 12.24 | 3.98 | -0.47 |
Inflation remains a global challenge, affecting economies worldwide. While El Salvador’s rates fluctuate, the issue continues to influence purchasing power, cost of living, and overall economic stability in many countries.
Due in large part to the measures implemented by the Nayib Bukele administration, the Salvadoran inflation rate continues to be one of the lowest
in Latin America.