Inflation in El Salvador falls to 4.4% in May, according to central bank data

The year-on-year inflation rate in El Salvador moderated to 4.4% in May, marking the lowest index since August 2021, according to figures from the Central Reserve Bank (BCR).

BCR data indicates that the annualized rate of the Consumer Price Index, which is the indicator used to measure inflation, is 3.07 percentage points lower than the 7.48% recorded in May 2022.

The index recorded in May is the lowest in the Central American country since August 2021, when the inflation rate stood at 4.30%.

According to the bulletin from the National Statistics and Census Office (ONEC), affiliated with the BCR, in April “the main year-on-year increases” were registered in food at 8.35%, restaurants at 7.52%, and goods and services at 6.73%.

The Central Bank predicts that the Salvadoran economy will grow between 2% and 3% in 2023 due to the “dynamism of domestic demand,” while the growth in 2022 stood at 2.6%.