The U.S. Commerce Department recently reported a slight decrease of 3 percentage points in the inflationary index in april with respect to the previous month, reaching 6.3%, the first slowdown in the increase of prices since november 2020.

At the last FED meeting, its officials agreed to be more aggressive in their monetary policy to reduce inflation in the North American country.

How will they do this? By increasing the interest rate by half a point during the months of june and july.

In El Salvador the impact could come in remittances, only in the first quarter of 2022 salvadorans in the United States sent US$1,802 million, an increase of 6% compared to 2021.

But with the increase in interest rates the flow of remittances could decrease due to the loss of purchasing power of salvadorans in the United States.

According to economist Carlos Acevedo, interest rates will continue to rise to 3.25% by the end of 2022.

Likewise, the type of remittances that El Salvador receives is 99.1% current remittances destined for consumption and 0.9% capital remittances destined for investment.