San Salvador. Image by As of the end of August 2024, the inflation rate in El Salvador, reported by the Central Reserve Bank (BCR), is 1.17%, the fourth lowest inflation point this year.
August’s inflation rate is 0.61 or 34.27% lower than the 1.78 it closed the previous month. Furthermore, August broke four months of consecutive inflation increase.
While today’s Consumer Price Index (CPI), indicating inflation, is lower than the 3.09 of August 2023, 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 | 1.42 | 0.28 (24.56%) |
| June | 0.53 | -0.23 | 2.59 | 7.76 | 3.78 | 1.48 | 0.06 (4.23%) |
| July | 0.13 | -0.06 | 3.43 | 7.42 | 3.34 | 1.78 | 0.30 (20.27%) |
| August | -0.49 | -0.30 | 4.30 | 7.66 | 3.09 | 1.17 | -0.61 (-34.27%) |
| 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 5.83%, followed by the food and non-alcoholic drinks sector with a rate of 3.12%. Third is the health sector, with a 2.09% 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 | 1.42 | 1.48 | 1.78 | 1.17 | ||||
| Food and non-alcoholic beverages | 3.98 | 3.60 | 2.15 | 2.21 | 2.34 | 2.71 | 3.63 | 4.53 | 3.12 | ||||
| Alcoholic beverages, tobacco | 4.36 | 2.62 | 2.66 | 3.10 | 2.26 | 1.16 | 0.62 | 0.64 | 0.85 | ||||
| Clothing and footwear | 0.65 | 0.48 | 1.08 | 1.37 | 0.83 | 1.03 | 1.18 | 1.00 | 1.15 | ||||
| Accommodation, water, electricity, gas, and other fuels |
-0.26 | 0.36 | 0.02 | 0.29 | 0.60 | 0.44 | 0.80 | 1.13 | 1.03 | ||||
| Furniture, household items, and ordinary household maintenance |
-1.74 | -2.31 | -1.41 | -1.65 | -1.42 | -1.27 | -1.66 | -1.42 | -1.39 | ||||
| Health | 2.98 | 2.96 | 2.62 | 2.48 | 2.52 | 2.69 | 2.53 | 2.21 | 2.09 | ||||
| Transportation | -4.27 | -3.72 | -3.08 | -3.79 | -1.04 | -0.05 | -2.19 | -2.87 | -4.34 | ||||
| Communications | -1.52 | -1.53 | -0.89 | -0.90 | -0.90 | -0.83 | -0.70 | -1.23 | -0.90 | ||||
| Recreation and culture | -2.12 | -2.07 | -2.98 | -3.33 | -3.03 | -2.68 | -2.40 | -2.34 | -2.20 | ||||
| Education | 0.00 | 0.00 | 0.00 | 0.00 | 0.43 | 0.43 | 0.43 | 0.43 | 0.43 | ||||
| Restaurants and hotels | 5.82 | 5.89 | 5.70 | 5.99 | 5.54 | 5.75 | 5.53 | 6.10 | 5.83 | ||||
| Miscellaneous goods and services | 0.98 | 0.73 | 0.64 | 0.44 | 0.45 | 0.55 | 0.43 | 0.58 | 0.79 |
The August 2024 Salvadoran food and non-alcoholic beverage inflation rate has decreased by 0.86 or 21.61% since the end of December 2023.
| 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 | 2.71 | 0.37 (15.81%) |
| June | 2.81 | 2.88 | -1.02 | 14.37 | 6.93 | 3.63 | 0.92 (33.95%) |
| July | 1.61 | 3.30 | -0.07 | 14.19 | 6.40 | 4.53 | 0.90 (24.79%) |
| August | -0.02 | 2.10 | 2.11 | 14.50 | 6.11 | 3.12 | -1.41 (-31.13%) |
| 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 is a global issue and is not isolated to El Salvador. 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.
