Consumer prices in El Salvador fell 0.49 percent year-on-year in August 2019, following a 0.13 percent gain in the previous month. It was the first decline in consumer prices since January 2017, as cost dropped for food & non-alcoholic beverages (-0.02 percent vs 1.61 percent in July) and miscellaneous goods & services (-0.03 percent vs 0.05 percent). Also, prices went down further for housing & utilities (-1.66 percent vs -1.26 percent); and transport (-2.27 percent vs -1.42 percent). Additionally, cost of restaurants & hotels eased (1.14 percent vs 1.38 percent) and communication prices continued to fall (-1.39 percent, the same as in July). Meanwhile, prices decreased less for furniture, household goods & maintenance (-0.97 percent vs -1.03 percent) and clothing & footwear (-0.99 percent vs -1.02 percent). On a monthly basis, consumer prices fell 0.36 percent, after declining 0.26 percent in July. Inflation Rate in El Salvador averaged 3.20 percent from 1994 until 2019, reaching an all time high of 12.20 percent in January of 1996 and a record low of -2.25 percent in September of 2015.
Inflation Rate in El Salvador is expected to be -0.30 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in El Salvador to stand at 1.30 in 12 months time. In the long-term, the El Salvador Inflation Rate is projected to trend around 1.30 percent in 2020, according to our econometric models.