Ecuador’s inflation rate dipped slightly to 1.51% in November 2024, down from 1.53% a year earlier. The monthly inflation rate turned negative at -0.26%, marking the fourth month this year with declining prices.
The accumulated inflation for November stands at 1.53%, a decrease from 1.79% in October, but higher than the 1.37% recorded in November 2023.
The cost of the Basic Family Basket (CFB) reached $804.79, while the average monthly household income was about $858.67, underscoring financial pressures on families.
Key contributors to the negative monthly inflation included food and non-alcoholic beverages, which fell by -0.15%. Significant price drops were seen in items like pickles (-20.05%) and snacks (-10.22%).
Transportation costs also decreased by -0.04%, driven by lower gasoline prices (-4.09%) and air travel costs (-4.48%). Approximately 57.94% of goods are subject to Value Added Tax (VAT), with those items showing a slight decline of -0.15%.
Goods without VAT experienced a sharper drop at -0.35%, reflecting changing consumer spending habits. Ecuador faces ongoing economic challenges, including rising global interest rates and political instability following recent leadership changes.
The cost of living remains a pressing issue, especially as food prices have risen by 4.2% over the past year. These inflation trends reveal a complex economic landscape in Ecuador.
They highlight the need for reforms to improve productivity and fiscal responsibility. Understanding these dynamics is crucial as they impact daily life and economic stability for Ecuadorians.
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