Inflation Drop Raises Alarm

El Salvador's Annual inflation for June was 0.2%, and demand contraction would take it to negative ground in the next months.

Monday, July 20, 2009

Jorge Arriaza is the executive director of the Salvadoran Industry Association, known in Spanish as ASI. He referred to the delicate subject by saying that "even though the consumer benefits, in the medium term this always leads to a trap in the economy."

From La Prensa Gráfica: "For Arriaza, said drop is caused by local demand contraction. 'There is no consumption, there is no demand, and this has caused a spectacular price drop, to the point of reaching almost zero demand for some products".

More on this topic

El Salvador Not Meeting IMF Inflation Target

November 2010

Accumulated inflation from January to October was 1.8%, already exceeding the annual target given to the IMF.

The country seems unlikely to meet this year´s 1.5% inflation goal committed to the International Monetary Fund (IMF).

"The high prices of some basic consumer goods such as beans, corn, vegetables and oil products in contrast with the slight inflation increase the government recorded in the first ten months of 2010," states the article in Elsalvador.com.

Nicaragua: Inflation Hit 4.73% in July

August 2010

Inflation for the first seven months was 4.73%, due to price rises in food, drinks, transport and services.

According to information from the Nicaraguan Central Bank, in July alone the rate of inflation increased 0.87%.

The economist Alejandro Aráuz commented that, "although the first seven months of 2010 have seen a rapid rise in inflation, the coming months tend to be quieter with inflation in October in particular being almost zero," reports La Prensa.

El Salvador: 2.3% Annual Inflation in April

May 2009

Annual inflation fell to 2.3% in April, one point lower than what was registered in March 2009, when it was 3.3%, according to data from the BCR.

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.

El Salvador: 12 month inflation at 4% in January

February 2009

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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