San Salvador. Image by As of the end of April 2024, the inflation rate in El Salvador, reported by the Central Reserve Bank (BCR), is 1.14%, representing the lowest rate recorded since February 2021.
Today’s inflation rate in El Salvador is 0.37 or 48.05% higher than the 0.77 it closed in March. April’s increase broke a 19-month downtrend, maintaining the same rate or decreasing.
While the Consumer Price Index (CPI), indicating inflation, is the lowest in three years, it doesn’t necessarily imply that Salvadorans are encountering more affordable products.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | Change from previous month |
|
|---|---|---|---|---|---|---|---|
| January | 0.25 | -0.08 | 0.31 | 6.48 | 7.03 | 1.20 | -0.03 (-2.44%) |
| February | 0.35 | -0.39 | 1.06 | 6.67 | 6.82 | 0.80 | -0.40 (-33.33%) |
| March | 0.68 | -0.53 | 1.77 | 6.69 | 6.06 | 0.77 | -0.03 (-3.75%) |
| April | 0.80 | -1.05 | 2.79 | 6.55 | 5.44 | 1.14 | 0.37 (48.05%) |
| May | 0.80 | -0.95 | 2.59 | 7.48 | 4.41 | ||
| June | 0.53 | -0.23 | 2.59 | 7.76 | 3.78 | ||
| July | 0.13 | -0.06 | 3.43 | 7.42 | 3.34 | ||
| August | -0.49 | -0.30 | 4.30 | 7.66 | 3.09 | ||
| September | -0.68 | -0.39 | 4.97 | 7.49 | 3.02 | ||
| October | -0.87 | -0.21 | 5.49 | 7.47 | 2.66 | ||
| November | -0.58 | -0.18 | 6.20 | 7.32 | 2.11 | ||
| December | 0.00 | -0.09 | 6.11 | 7.32 | 1.23 |
SEE ALSO: El Salvador’s Basic Food Basket Cost
Thus far in 2024, the highest inflation rate belongs to Restaurants and Hotels, standing at 5.54%, followed by the health sector with a rate of 2.52%. Third are food and non-alcoholic drinks, with a 2.34% inflation.
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 2023 |
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| General Index | 1.23 | 1.20 | 0.80 | 0.77 | 1.14 | ||||||||
| Food and non-alcoholic beverages | 3.98 | 3.60 | 2.15 | 2.21 | 2.34 | ||||||||
| Alcoholic beverages, tobacco | 4.36 | 2.62 | 2.66 | 3.10 | 2.26 | ||||||||
| Clothing and footwear | 0.65 | 0.48 | 1.08 | 1.37 | 0.83 | ||||||||
| Accommodation, water, electricity, gas, and other fuels |
-0.26 | 0.36 | 0.02 | 0.29 | 0.60 | ||||||||
| Furniture, household items, and ordinary household maintenance |
-1.74 | -2.31 | -1.41 | -1.65 | -1.42 | ||||||||
| Health | 2.98 | 2.96 | 2.62 | 2.48 | 2.52 | ||||||||
| Transportation | -4.27 | -3.72 | -3.08 | -3.79 | -1.04 | ||||||||
| Communications | -1.52 | -1.53 | -0.89 | -0.90 | -0.90 | ||||||||
| Recreation and culture | -2.12 | -2.07 | -2.98 | -3.33 | -3.03 | ||||||||
| Education | 0.00 | 0.00 | 0.00 | 0.00 | 0.43 | ||||||||
| Restaurants and hotels | 5.82 | 5.89 | 5.70 | 5.99 | 5.54 | ||||||||
| Miscellaneous goods and services | 0.98 | 0.73 | 0.64 | 0.44 | 0.45 |
The April 2024 Salvadoran food and non-alcoholic beverage inflation rate is the lowest since the 2.11% of August 2021.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | Change from previous month |
|
|---|---|---|---|---|---|---|---|
| January | 0.82 | 1.28 | 0.12 | 8.95 | 12.22 | 3.60 | -0.38 (-9.55%) |
| February | 0.93 | 0.91 | 0.73 | 9.45 | 12.61 | 2.15 | -1.45 (-40.28%) |
| March | 1.22 | 1.07 | 1.15 | 9.81 | 11.62 | 2.21 | 0.06 (2.79) |
| April | 1.70 | 2.08 | -0.04 | 10.89 | 10.36 | 2.34 | 0.13 (5.88%) |
| May | 2.34 | 2.26 | -0.87 | 13.28 | 8.35 | ||
| June | 2.81 | 2.88 | -1.02 | 14.37 | 6.93 | ||
| July | 1.61 | 3.30 | -0.07 | 14.19 | 6.40 | ||
| August | -0.02 | 2.10 | 2.11 | 14.50 | 6.11 | ||
| September | -0.16 | 1.43 | 3.94 | 13.55 | 5.98 | ||
| October | 0.71 | 0.67 | 6.07 | 12.82 | 5.91 | ||
| November | 0.76 | 0.62 | 7.42 | 12.06 | 4.70 | ||
| December | 1.20 | 0.37 | 7.96 | 12.24 | 3.98 |
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.
