The indicator’s decrease is related to the drop in food and raw material prices, according to what Economy Minister Ricardo Esmahán told El Diario de Hoy.
Additionally, "Minister of Agriculture, Mario Salaverría, confirmed the decline in the basic product basket. A quintal of corn is quoted in the market between $15 and $16, while this product reached levels of $18 to $19 per quintal during the same period last year. In the case of beans, Salaverría highlighted the significant decrease of the grain, which was quoted at $90 per quintal last year and is now at $48."
After scraping the double digits in August, annual point to point inflation decreased in September and settled at 8.7%.
The data, which shows a drop of 1.2 points, provides some relief to the Government which had promised to keep the final yearly index below 10.
"This is an index that has been maintained below the double digits, which was our objective and, given the tendency of the decrease in the cost of fuel at this time, I believe that we are going to reach our objective," said the Minister of the Economy, Ricardo Esmahan. The data was made public yesterday and put the accumulated inflation since January at 6.9%
Ricardo Esmahan, minister of Economy, estimates a 25% drop in the last two months of 2008.
According to reports from elsalvador.com "Ricardo Esmahan, minister of Economy, said yesterday that exports from the sector have been affected by the drop in textile consumption, not some much in value but in volume.
12 month inflation reached 4% in January, 0.7% less than the same period last year, when a figure of 4.7% was recorded by the Banco Central de Reserva.
Elsalvador.com publishes in its website: "In 2008, inflation peaked from June to August, when it reached 9.0% to 9.9%, influenced by the increase experimented in the price of fuels in international markets."
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