El Salvador Producer Inflation Hits 1-Year High

Producer prices in El Salvador rose by 2.78% year-on-year in May 2026, accelerating from a 1.59% increase in the previous month. The pickup was largely driven by higher costs for electricity, gas, steam and air conditioning (10.34% vs 1.70% in April), activities of administrative and support services (5.20% vs 4.62%), healthcare and social assistance (4.44%, unchanged), transport and storage (3.22% vs 3.26%), and accommodation and food services (2.59% vs 2.20%). Producer prices continued to decline for information and telecommunications (-0.07%, unchanged), while water supply, sewerage, waste management and remediation activities also remained in negative territory (-0.15% vs 0.01%). Other notable increases were recorded in real estate activities (1.36% vs 0.81%) and other service activities (3.80% vs 2.23%).

Producer prices in El Salvador rose by 1.59% year-on-year in April 2026, accelerating from a slightly upwardly revised 1.36% increase in the previous month. This marked the fastest growth since April last year, largely driven by higher costs for electricity, gas, steam and air conditioning (1.7% vs 0.29% in March), transport and storage (3.26% vs 2.97%), activities of administrative and support services (4.62% vs 5.39%), and human health care and social assistance (4.44% vs 4.47%). On the other hand, producer prices continued to decline for information and telecommunications (-0.07% vs -0.16%). On a monthly basis, producer prices went up by 0.31% in April, following a 0.48% gain in the preceding period.

Producer prices in El Salvador rose 1.35% year-on-year in March 2026, the same as in February, indicating stable cost pressures at the producer level. Upward pressure came from manufacturing (0.75% vs. 0.21%) and transport and storage (2.98% vs. 2.72%), suggesting rising input and logistics costs. Meanwhile, electricity and utilities slowed sharply (0.29% vs. 5.12%), offsetting broader increases across other sectors. Overall, while headline PPI remained stable, underlying data points to emerging cost pressures, particularly in cyclical sectors.