Consumer prices in El Salvador increased 0.01 percent year-on-year in December 2019, following a 0.58 percent decrease in the prior month. Main upward pressure came from prices of food & non-alcoholic beverages (1.20 percent vs 0.76 percent in November); transport (0.49 percent vs -1.16 percent); recreation & culture (0.52 percent vs 0.41 percent); restaurants & hotels (0.91 percent vs 0.68 percent) and alcoholic beverages & tobacco (3.22 percent vs 2.96 percent). In contrast, cost fell for housing & utilities (-2.31 percent vs -3.96 percent); clothing & footwear (-1.85 percent vs -1.72 percent); furnishings (-1.20 percent, the same pace as in November); communication (-1.18 percent vs -0.95 percent) and miscellaneous goods & services (-0.28 percent vs -0.32 percent). On a monthly basis, consumer prices edged up 0.1 percent, the same pace as in the previous month. Inflation Rate in El Salvador averaged 3.16 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 0.90 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 1.70 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.