The inflation rate in El Salvador is 7.47% as of October 31, 2022

By Eddie Galdamez  |  Nov 11th, 2022

The inflation rate in El Salvador as of October 31, 2022, is 7.47; it is 0.02 lower than the previous month. The high inflation results from the current global crisis of high prices, the Ukraine conflict, and the effects of the COVID-19 pandemic.

The yearly average inflation rate for El Salvador from 2015 to 2020 was 0.28; however, that number skyrocketed to 3.47 in 2021 due to the global pandemic. Recent data by the Salvadoran Central Reserve Bank shows that the inflation rate will increase drastically in 2022.

The monthly inflation rate average for 2022 is 7.17, which implies that the country is on pace to have the highest inflation rate since 1996 (9.8).

Inflation rate in El Salvador
2021 2022
January 0.31 6.48
February

1.06 6.67
March 1.77 6.69
April 2.79 6.55
May 2.59 7.48
June 2.59 7.76
July 3.43 7.42
August 4.30 7.66
September 4.97 7.49
October 5.49 7.47
November 6.20
December 6.11

Historical inflation rate in El Salvador 2015 to 2021

El Salvador inflation rate

The inflation rate problem in 2022 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 is 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 allows 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.

Salvadoran Finance Minister Alejandro Zelaya has stated on many occasions that “with these subsidies, the increase in prices is contained and avoids a cascading increase in the economy.” Zelaya has also noted that “the Salvadoran Government allocates $60 million per month to subsidize the fuel increase.”

Although the country’s inflation is at an all-time high, the measures implemented by the current administration, alongside an increase in exports, could maintain or reduce the country’s inflation rate.