Ecuador’s annual inflation rate fell to 0.25% in February 2025, the lowest since June 2021. Higher costs in restaurants and hotels contributed to this increase, while prices for clothing, housing, food, and transportation experienced reductions. The monthly consumer price index rose slightly by 0.09% after a decrease in January.
As of February 2025, Ecuador’s annual inflation rate has decreased to 0.25%, the lowest level observed since June 2021. This figure represents a slight decline from the previous month’s rate of 0.26%. The primary contributor to this increase was the rise in prices for restaurants and hotels, which saw an uptick to 2.88% from 2.74% in January.
Simultaneously, reductions in prices were noted for clothing and footwear, which fell by 1.11%, and housing and utilities, decreasing by 15.16%. These declines occurred as the nation worked through issues stemming from hydroelectric power shortages that had previously necessitated government subsidies.
In the food and non-alcoholic beverage sector, prices experienced a slight decrease of 0.11%, contrasting with a previous increase of 0.19%. Additionally, the costs associated with transportation grew at a slower pace of 3.01%, down from 3.05%, while communications and recreation and culture also observed reductions in their respective inflation rates.
On a monthly basis, consumer prices experienced a marginal increase of 0.09% after a decline of 0.15% in the preceding month.
In summary, Ecuador’s inflation rate has reached a historic low since June 2021, primarily influenced by rising costs in the hospitality sector amidst declining prices in other categories. The transitional state of the economy shows signs of stabilization, reflected in the slight monthly increase in consumer prices. Continued monitoring will be essential to understand the long-term implications of these fluctuations.
Original Source: www.tradingview.com
