A. M. El Salvador ranked as the country with the lowest inflation in Central America and the Dominican Republic (CARD) in January 2025, with an inter-annual rate of only 0.31%, according to data from the Secretaría del Consejo Monetario Centroamericano (SECMCA). This figure reflects price stability in the country, which favors the purchasing power of salvadorans.
At the regional level, inter-annual inflation in Central America and the Dominican Republic stood at 2.06%, showing a reduction of 0.16 percentage points with respect to december 2024. This downward trend is a positive sign for consumers, as it indicates a slowdown in price increases in several countries.
Honduras registered the highest inflation in the region with 4.27%, followed by the Dominican Republic with 3.32% and Nicaragua with 2.73%. In contrast, Costa Rica and Guatemala showed lower levels, with 1.15% and 0.99%, respectively, but it was El Salvador that stood out with the lowest inflation.
Price stability in El Salvador could be related to various economic strategies, such as control of the money supply and measures to contain the impact of external factors. In addition, the appreciation of the dollar and regulation in certain sectors have contributed to keeping inflation at minimum levels.
With inflation under control, Salvadorans can experience greater stability in the cost of living, especially in necessities. Meanwhile, in the rest of the region, the downward trend suggests that prices could remain more stable in the coming months.
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