
Salvadorans’ basic food basket is facing renewed inflationary pressure. A survey conducted at San Salvador’s central market confirms a significant increase in dairy prices, driven primarily by shortages caused by adverse weather conditions.
The impact of the shortage is acutely reflected in prices per pound, forcing families to adjust their consumption habits: from US$2.25 to US$2.95 per pound.
Merchants in the sector have indicated that the accumulation of water on dairy farm land has directly affected cattle feed, causing a decrease in milk production and, consequently, a shortage of dairy products.

The key factor behind the increase is not demand, but rather the disruption in supply. Vendors at the Mercado Central are clear: current national production “does not, in truth, supply the country.” This gap between high demand and low supply is what is pushing prices up.
Concerns are growing with the forecast for more rain in the coming days, which could worsen the situation and lead to further increases in the short term.
Traders do not rule out a continued upward trend if production remains lagging and demand remains significantly higher than what dairy farms can supply. The need to cover the supply gap with products that have not yet entered the market maintains constant uncertainty about future prices.
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