The annual inflation rate in El Salvador fell to 0.25 percent in January 2019 from 0.43 percent in the previous month. It was the lowest inflation rate since January 2017, as prices slowed for housing & utilities (1.9 percent from 3.0 percent in December); and miscellaneous goods & services (a flat reading from 0.3 percent). Also, cost declined further for transport (-2.1 percent from -1.0 percent); furnishing & household equipment (-1.5 percent from -1.1 percent); clothing & footwear (-1.8 percent from -1.7 percent) and communication (-0.6 percent from -0.5 percent). Meanwhile, prices rose at a faster pace for food & non-alcoholic beverages (0.8 percent from 0.4 percent); and restaurants & hotels (1.9 percent from 1.8 percent) and inflation was steady for health (0.8 percent, the same as in December) and education (-0.6 percent). On a monthly basis, consumer prices went down 0.1 percent, after decreasing 0.5 percent in the prior month. Inflation Rate in El Salvador averaged 3.27 percent from 1994 until 2019, reaching an all time high of 12.20 percent in January of 1996 and a record low of -2.25 percent in September of 2015.
Inflation Rate in El Salvador is expected to be 1.40 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in El Salvador to stand at 2.10 in 12 months time. In the long-term, the El Salvador Inflation Rate is projected to trend around 2.30 percent in 2020, according to our econometric models.