Ecuador: Inflation edges up in March
Latest reading: Inflation inched up to 0.3% in March from February’s 0.2%, marking the highest inflation rate since December 2024, though it remained near the lowest levels recorded since 2021. March’s uptick mainly reflected stronger price pressures for food and a softer decline in costs for housing and utilities—the latter kept artificially low by electricity subsidies introduced in November 2024 and expiring at the end of March. That said, transportation prices increased at a milder pace.
As a result, the trend pointed down, with annual average inflation falling to 1.2% in March (February: 1.4%).
Lastly, consumer prices rose 0.35% over the previous month in March, accelerating from the 0.09% increase seen in February. March’s figure marked the highest reading since July 2024.
Panelist insight: Commenting on the outlook, Goldman Sachs’s Sergio Armella stated:
“Amid power outages in the fourth quarter of 2024, President Noboa introduced a subsidy to electricity bills […] and we expect headline inflation to jump back up in April-May once the subsidy wanes.”