Annual inflation rate in Honduras at 5.15% in July, the lowest in 19 months

In July, Honduras saw an annual inflation rate of 5.15%, the lowest in 19 months, as reported by the country’s Central Bank (BCH).

This marks the fifth consecutive month of deceleration and is less than the rate during the same period in 2022 (10.86%).

The Consumer Price Index (CPI) in July was 0.46%, while cumulative inflation was 2.97%.

According to the BCH, the slowing in the annual rate was due to moderated price increases in some foods such as grains, vegetables, and fruits, as well as lower average costs for vehicle and domestic fuels and electricity tariffs.

The sectors that most influenced the annual inflation were housing, water, electricity, gas, and other fuels, contributing 2.76 percentage points; hotels, cafes, and restaurants (0.52 points); and personal care (0.42 points).

These increases were offset by a negative contribution from transportation, which accounted for 0.37 points.

Positive variations in price indices were primarily due to increased costs of perishable and industrialized foods and a rise in fuel prices, balanced by a decrease in electricity tariffs and regular gasoline.

About 39% of the annual inflation up to July is imported, the lowest proportion since October 2021, emphasized by the moderation of external supply shocks.

The Central American country closed 2022 with an inflation rate of 9.80%, influenced by a slowdown in food and fuel prices.