Ecuador’s Inflation Rate Declines to Lowest Level Since June 2021

Ecuador’s inflation rate fell to 0.25% in February 2025, the lowest since June 2021. Influences include rising restaurant prices and declines in clothing, housing, and food costs. Monthly consumer prices increased by 0.09% after a prior drop, indicating economic recovery trends mixed with sector-specific price movements.

In February 2025, Ecuador’s annual inflation rate decreased to 0.25%, the lowest level since June 2021. This is a minor drop from the previous month’s rate of 0.26%. The decline in inflation was largely influenced by an increase in costs related to restaurants and hotels, which rose to 2.88%, compared to 2.74% in January.

Conversely, the prices for clothing and footwear saw a decrease of 1.11%, improved from a 1.24% decline in January. Additionally, the costs associated with housing and utilities also declined further by 15.16%, relative to a previous 15.26% drop. This shift reflects a recovery phase following hydroelectric power shortages that necessitated government subsidies.

On the other hand, food and non-alcoholic beverage prices fell by 0.11%, contrasting with a 0.19% increase reported earlier. Other sectors experienced slower price growth as well, including transportation rising by 3.01% (down from 3.05%), communications at 1.83% (from 2.02%), and recreation and culture at 1.39% (down from 3.74%).

In terms of monthly comparison, consumer prices experienced a slight increase of 0.09%, recovering from a decrease of 0.15% noted in January.

Ecuadorian inflation reached its lowest level since mid-2021 at 0.25% in February 2025. This decrease reflects rises in certain sectors, like restaurants, while other areas have shown price declines. The overall economic environment indicates a modest recovery, particularly following previously challenging hydroelectric power shortages. Monthly consumer prices also rose slightly, suggesting fluctuations in economic stability.

Original Source: www.tradingview.com