Monday, 11 March 2024 18:43

BCR reports lowest inflation rate in three years

Written by Karla Gutiérrez

The Banco Central de Reserva (BCR) announced that El Salvador closed february 2024 with an inflation rate of 0.80%.

It has been the lowest report in the last 3 years, which is below the 1.06% reported in february 2021.

Historical data show that since august 2022 -when the indicator reached 7.66%- the country has experienced a constant decrease; since in september the rate reached 7.49%; in october, 7.47%; while in november and december the rate was 7.32%.

For 2023, the decreases continued, and in january inflation was recorded at 7.03%; in february at 6.82%; in march at 6.06%; in april at 5.44%; in may at 4. 41%; in june of 3.78%; in july of 3.34%; in august of 3.09%; in september of 3.02%, in october of 2.66%, and in november of 2.11%; in december of 1.23%; while in january 2024 it was 1.20%.

In light of these numbers, during the results report for the third quarter of 2023, which revealed a 3.6% growth of the gross domestic product (GDP), with respect to the same period of the previous year, the president of the BCR, Douglas Rodríguez, highlighted that "the continuous deceleration of the prices of goods and services" was one of the main drivers of the economy last year, together with factors such as security and tourism.

The official -with data up to november 2023- assured that El Salvador was among the four Latin American countries less affected by the inflationary phenomenon that complicated the world economy since 2021, because of the beginning of the war between Ukraine and Russia. Up to the eleventh month of 2022, the average inflation rate in Latin America was 3.8%.



Translated by: A.M