Ecuador’s Inflation Drops to 1.35% in January 2024

Ecuador’s January 2024 inflation rose modestly by 0.13%, up from December 2023’s -0.02% and higher than January 2023’s 0.12%, according to INEC.

This development indicates a continued trend of low inflation in the country.

Yearly, the inflation rate dropped to 1.35%, a significant decrease from January 2023’s 3.12%, aligning with December 2024’s rate.

This demonstrates stability in Ecuador‘s economy over the year.

INEC pinpointed food and non-alcoholic beverages, health, and home maintenance as the main contributors to January’s inflation.

Notably, food inflation rose to 0.38% from January 2023’s 0.08%, marking a noticeable shift.

The basic family basket cost stood at $789.57 in January 2024, showing that average family income now exceeds the basket’s cost by 108.75%. This is a slight increase from December 2023.

Region- and city-wise, coastal areas saw a monthly inflation rate of 0.36%, surpassing the highland areas’ -0.13%.

Annually, coastal cities also had a higher rate of 1.97% compared to highland areas’ 0.67%.

Esmeraldas, Manta, Machala, and Guayaquil see inflation rates surpassing the national average, notably Esmeraldas and Guayaquil.

Ecuador stands out in the Andean Community for its low inflation rate, lower than Bolivia’s 2.12%, Peru’s 3.24%, and Colombia’s 9.28%.

In short, this highlights Ecuador’s effective economic management amidst regional challenges.