Wednesday, 06 July 2022 15:52

El Salvador has an inflation rate of 7.5%: BCR

Written by Evelyn Alas

The President of the Banco Central de Reserva BCR), Douglas Rodriguez, affirmed in a morning interview that El Salvador is one of the countries in the Central American region that has an inflation rate of 7.5%.

Rodriguez, added that world inflation, currently, is 7%, only 2% is due to the cost of energy.

Currently the prices of some foods in the country such as: the pound of beans is at US$1.10 when it used to cost US$0.80, the pound of potatoes at US$0.70, corn, rice and wheat flours have suffered increases in the last days.

Inflation also causes money to lose value, so it will motivate people to consume and spend money, rather than save it, because if money is going to be worth less in the future, people and investors will prefer to spend it now.

Higher prices, moreover, cause people to prefer to consume "now" rather than "later", because then prices will be more expensive.

If inflation continues to rise, people will have to take more drastic measures to avoid affecting their pockets and the daily sustenance of their families.

 

It is likely that by the end of the year, prices for the purchase of chickens or turkeys may rise due to the high cost of raising poultry.