The annual inflation rate in El Salvador decreased to 0.43 percent in December 2018 from 1.08 percent in the previous month. It was the lowest inflation rate since February 2017, as prices fell for transport (-1.01 from 2.0 percent in November). Also, cost eased for food & non-alcoholic beverages (0.37 percent from 0.46 percent); housing & utilities (3.0 percent from 4.52 percent); restaurants & hotels (1.77 percent from 1.78 percent); miscellaneous goods & services (0.29 percent from 0.75 percent) and health (0.79 percent from 0.96 percent). Additionally, prices continued to decline for clothing & footwear (-1.73 percent from -1.50 percent); furnishings & household equipment (-1.10 percent from -0.88 percent) and education (-0.64 percent, the same as in November). On a monthly basis, consumer prices went down 0.5 percent, after falling 0.2 percent in the prior month. Inflation Rate in El Salvador averaged 3.28 percent from 1994 until 2018, 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.