Ecuador: Inflation holds steady in October
Latest reading: Inflation held steady at September’s 1.4% in October. Weaker price pressures for transport plus a steeper decline in prices for food offset stronger price pressures for restaurants and hotels plus a milder fall in costs for clothing and footwear.
Meanwhile, annual average inflation edged down to 1.6% in October (September: 1.7%).
Lastly, consumer prices dropped 0.24% over the previous month in October, contrasting September’s 0.18% rise. October’s result marked the weakest reading since June.
Panelist insight: Analysts at the EIU commented:
“Following an uptick in 2024, 12-month consumer price inflation will end 2025 lower than a year earlier, at 1%, as short-term price pressures from the VAT increase and the gradual reduction of fuel subsidies ease, and global oil prices decline. Global commodity price shocks or weather-related disruptions to the domestic economy could push inflation above our forecast, as could a faster than expected recovery of weak domestic demand.”