Ecuador: Inflation rises in October from the prior month
Latest reading: Consumer prices rose 1.2% in annual terms in October, following a 0.7% increase in the prior month.
Relative to the previous month’s figures, there were higher price pressures for transportation (+1.1% in annual terms vs +0.1% in September), food and non-alcoholic beverages (+2.0% vs +0.6% in September) and restaurants and hotels (+1.6% vs +1.2% in September). In contrast, there were reduced price pressures for clothing and footwear (-4.4% vs -4.3% in September) and communication (-0.9% vs -0.2% in September).
Lastly, consumer prices were up 0.28% in October in month-on-month terms, following a 0.08% increase in the previous month.
Panelist insight: Commenting on the outlook, Sergio Armella, analyst at Goldman Sachs, stated:
“Overall—and despite a 56% increase in diesel prices between September and October—inflation remains low, largely due to mild core inflation pressures (excluding food and energy). In October, headline inflation was mainly driven by energy prices (diesel and gasoline prices in particular), a reflection of the recent unwind of fiscally costly subsidies and higher food prices. Over the coming months annual inflation will face headwinds from adverse base effects.”