A. M. 
The Producer Price Index (IPP) of El Salvador, a key indicator to anticipate cost pressures in the supply chain, registered an annual inflation of 1.20% in August 2025, according to the last bulletin of the Banco Central de Reserva This data reflects a price trajectory at the producer level that remains at moderate growth levels.
The IPP stood at 135.30 in august 2025. In terms of monthly variation, the index showed a slight increase of 0.15% compared to the month of july. In the accumulated of the year (accumulated variation), the increase in the prices of goods and services produced in the country amounts to 0.70% to august.
For producers, the movement of the IPP is a direct indicator of the change in its production costs and, therefore, of its profitability. An increase in IPP means that producers are paying more expensive for their inputs, raw materials, and intermediate services. This cost increase is the main pressure that is then transferred to final consumers through higher prices.
The sectors that drive the annual increase
When the index for sections of the uniform international industrial classification (CIIU) sections, important inflationary sources are observed in the services segment. The greatest increases in annual variation to august 2025 concentrated on:
• Human health and social assistance activities: heading the list with a robust 6.59%.
• Transport and storage: with a significant increase of 5.50%.
• Teaching: registering a 3.91%rise.
The behavior of these service sectors suggests that the operating costs at the producer level in these areas are climbing at a rate greater than the general average of the economy.
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