Ecuador’s annual inflation rate fell to 0.25% in February 2025, the lowest since June 2021. The increase in restaurant and hotel costs was countered by decreases in clothing, utilities, and food prices. Monthly consumer prices rose slightly by 0.09% after a prior decrease of 0.15%.

As of February 2025, Ecuador’s annual inflation rate has decreased to 0.25%, the lowest level since June 2021, down from 0.26% in January. This modest rise was largely attributed to increased expenses in the restaurant and hotel sectors, which experienced an increase of 2.88% compared to 2.74% the previous month.

Concurrently, the rates for clothing and footwear saw a reduced decline of -1.11%, and housing and utilities similarly declined at -15.16%, an improvement from -1.24% and -15.26% respectively. This trend reflects Ecuador’s ongoing recovery from prior hydroelectric power shortages that necessitated government subsidies.

Despite these increases, there were notable declines in food and non-alcoholic beverages at -0.11%, a stark contrast to a 0.19% rise the previous month. Reductions were also evident in transportation (3.01% from 3.05%), communications (1.83% from 2.02%), and recreation and culture (1.39% down from 3.74%). On a monthly scale, consumer prices experienced a slight rise of 0.09% following a previous decrease of 0.15% in January.

Ecuador’s inflation rate has reached its lowest point since June 2021, with an annual rate of 0.25% recorded in February 2025. The overall economic stability is reflected in the diverse shifts in price categories, particularly in hospitality and utility sectors, while some consumer goods such as food and transportation saw declines. This indicator signifies gradual economic recovery following extensive government interventions due to past challenges.

Original Source: www.tradingview.com