The Inflation Rate in El Salvador for 2024 Is 0.80, the Lowest in Three Years

The January 2024 Inflation Rate is the Lowest Since January 2021

By Eddie Galdamez  | Updated on: Mar 9th, 2024
Inflation rate in El SalvadorSan Salvador. Image by @CHSanSalvador

As of February 2024, the inflation rate in El Salvador, reported by the Central Reserve Bank (BCR), is 0.80%, representing the lowest rate recorded since January 2021.

Today’s inflation rate in El Salvador is -0.40 or 33.33% lower than the 1.20% it closed the previous month. The Salvadoran inflation rate is in a downtrend, reaching 18 consecutive months, maintaining the same rate or decreasing.

While the Consumer Price Index (CPI), indicating inflation, is on a downward trend, it doesn’t necessarily imply that Salvadorans are encountering more affordable products.

Inflation Rate in El Salvador
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
April 0.80 -1.05 2.79 6.55 5.44
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

In the beginning of 2024, the sector with the highest inflation rate is Restaurants and Hotels, standing at 5.70%, followed by Alcoholic beverages & Tabaco with a rate of 2.66%. Third is food and non-alcoholic drinks at 3.60%.

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.

2024 Inflation Rate
Dec
2023
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
General Index 1.23 1.20 0.80
Food and non-alcoholic beverages 3.98 3.60 2.15
Alcoholic beverages, tobacco 4.36 2.62 2.66
Clothing and footwear 0.65 0.48 1.08
Accommodation, water, electricity,
gas, and other fuels
-0.26 0.36 0.02
Furniture, household items,
and ordinary household maintenance
-1.74 -2.31 -1.41
Health 2.98 2.96 2.62
Transportation -4.27 -3.72 -3.08
Communications -1.52 -1.53 -0.89
Recreation and culture -2.12 -2.07 -2.98
Education 0.00 0.00 0.00
Restaurants and hotels 5.82 5.89 5.70
Miscellaneous goods and services 0.98 0.73 0.64

The January 2024 Salvadoran food and non-alcoholic beverage inflation rate is the lowest since the 2.11% of August 2021.

Food and non-alcoholic beverages inflation rate
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
April 1.70 2.08 -0.04 10.89 10.36
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.