The Central Bank reports that inflation fell 0.61 per cent compared to July, due to lower pressure on prices in the food and non-alcoholic liquor category.
The Consumer Price Index (CPI) – the basis for calculating inflation – in El Salvador fell back to 1.17 percent in August, after four months of constant increases, the Central Reserve Bank (BCR) reported Friday.
The August result meant a reduction of 0.61 per cent compared to 1.78 per cent reported in July and returns to the inflation rate in April (1.14 per cent), when it began to suffer constant increases due to higher food costs.
The CPI measures the price of a basket of 238 more representative goods and services in the consumption of Salvadoran households, which are shown in 12 categories. According to the BCR, food and non-alcoholic beverage activity fell the largest drop, from 1.41 percentage points, after going from a rate of 4.53 per cent in July to 3.12 per cent in August.
From June to July, vegetable prices suffered aggressive increases, which resulted in the price of the urban basic food basket (CBA) of July to exceedfirst time the $264the most expensive value since it has been recorded, starting in 2001, according to the National Bureau of Statistics and Censuses (Onec).
What more changes were there?
There was also a decrease of 0.10 per cent in the activity of accommodation, water and electricity after being inflation of 1.03 % in August, as well as health from 2.21 per cent to 2.09 per cent
Restaurants and hotels, which maintain the highest inflation in the Salvadoran economy, showed a reduction of 0.27 percent.
The activity of alcoholic beverages and tobacco, meanwhile, rose from 0.64 % to 0.85 %, as well as the clothing and footwear sector, from 1 per cent to 1.15 per cent. Similarly, inflation of various goods and services rose to 0.79 per cent.
According to the BCR, four activities that make up the CPI are in deflation – price drop. The furniture and household goods sector was left at -1,39 % in August, transport in -4.34 %, communications in -0.9 %, and recreation and culture with a rate of -2.20 %.
This article has been translated after first appearing in Diario El Mundo