Ecuador’s annual inflation rate fell to 0.25% in February 2025, the lowest since June 2021, down from 0.26% the previous month. Costs increased in restaurants and hotels, while prices for clothing, utilities, food, and transportation showed varied trends. Monthly consumer prices rose 0.09%, in contrast to January’s decrease.
In February 2025, Ecuador’s annual inflation rate decreased to 0.25%, the lowest level recorded since June 2021, slightly down from 0.26% in the previous month. The increase is attributed predominantly to rising costs in the restaurant and hotel sectors, which rose to 2.88% from 2.74% in January.
Conversely, price reductions in clothing and footwear (-1.11% compared to -1.24%) and housing and utilities (-15.16% compared with -15.26%) indicate that Ecuador is recovering from past hydroelectric power shortages, which necessitated government subsidies. Additionally, food and non-alcoholic beverages experienced a price drop of -0.11%, a downturn from 0.19%, while costs for transportation, communications, and recreational activities showed a slowdown.
Overall, consumer prices rose by 0.09% on a monthly basis, following a decrease of 0.15% in January. This gradual change underscores the delicate balance of economic recovery in Ecuador amidst fluctuations in various price categories.
Ecuador’s inflation rate has reached its lowest point since June 2021, reflecting a modest 0.25% increase in February 2025. While rising costs in the hospitality sector contributed to this figure, significant declines in other categories, such as clothing and utilities, highlight the ongoing recovery from energy shortages. The overall economic indicators suggest a period of careful stability following previous volatility.
Original Source: www.tradingview.com
