The inflation rate in El Salvador in 2023 is at 6.82; it is 0.21 or 2.99% lower than the 7.03 it closed in January 2023. The Salvadoran inflation rate is in a downtrend, reaching a fourth consecutive month in decline. Thus far this year, El Salvador has one of the lowest inflation rates in the region.
The Salvadoran inflation skyrocketed to 3.47 in 2021 and to 7.32 in 2022. The inflation increment results from the current global crisis of high prices, the Russia/Ukraine conflict, and the effects of the COVID-19 pandemic.
El Salvador started the year with high inflation and closed February with a year-on-year inflation rate of 6.82%. It ended nine consecutive months of above 7% inflation, a barrier first reached on May 2022, when it hit 7.48.
| 2021 | 2022 | 2023 | Change from previous month |
|
|---|---|---|---|---|
| January | 0.31 | 6.48 | 7.03 | -0.29 (-3.96%) |
| February | 1.06 | 6.67 | 6.82 | -0.21 (-2.99%) |
| 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 | 7.32 | ||
| December | 6.11 | 7.32 |
Although the overall inflation rate went down on February 2023, the food and non-alcoholic beverages inflation went up 0.39 or 3.19% to 12.61. This is not good news for Salvadorans that are facing economic challenges. This inflation will most likely increase the country’s essential food basket cost.
With 12.61, food and non-alcoholic beverages present the highest accumulated inflation rate of the Consumer Price Index (CPI).
| Jan | Feb | Change YTD |
|
|---|---|---|---|
| Food and non-alcoholic beverages | 12.22 | 12.61 | 0.39 (3.19%) |
| Alcoholic beverages, tobacco | 5.58 | 4.84 | -0.74 (-13.26%) |
| Clothing and footwear | 3.95 | 2.89 | -1.06 (-26.84%) |
| Accommodation, water, electricity, gas, and other fuels | 2.12 | 2.46 | 0.34 (16.04%) |
| Furniture, household items, and ordinary household maint | 7.13 | 5.29 | -1.84 (-25.81%) |
| Health | 2.57 | 2.8 | 0.23 (8.95%) |
| Transportation | 5.07 | 4.01 | -1.06 (-20.91%) |
| Communications | -0.96 | -1.47 | -0.51 (53.13%) |
| Recreation and culture | 5.84 | 5.15 | -0.69 (-11.82%) |
| Education | 1.5 | 1.5 | 0 (0.00%) |
| Restaurants and hotels | 7.26 | 7.4 | 0.14 (1.93%) |
| Miscellaneous goods and services | 10.03 | 9.23 | -0.8 (-7.98%) |
The Salvadoran food and non-alcoholic beverage inflation rate has soared from 0.12 in January 2021 to 12.61 on February 2023; it is also 3.16 points higher than the 9.45 registered in February 2022.
| 2021 | 2022 | 2023 | Change from previous month |
|
|---|---|---|---|---|
| January | 0.12 | 8.95 | 12.22 | -0.02 (-0.16%) |
| February | 0.73 | 9.45 | 12.61 | 0.39 (3.19%) |
| March | 1.15 | 9.81 | ||
| April | -0.04 | 10.89 | ||
| May | -0.87 | 13.28 | ||
| June | -1.02 | 14.37 | ||
| July | -0.07 | 14.19 | ||
| August | 2.11 | 14.50 | ||
| September | 3.94 | 13.55 | ||
| October | 6.07 | 12.82 | ||
| November | 7.42 | 12.06 | ||
| December | 7.96 | 12.24 |
The Salvadoran food and non-alcoholic beverage inflation rate has soared from 0.12 in January 2021 to 12.61 on march 1, 2023.
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.
One of the most significant measures established by the government was to create the Special Transitory Law to Set Maximum Fuel Prices, which allowed 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.
Although the country’s inflation is high, the measures implemented by the current administration could maintain or reduce the country’s inflation rate.
