A. M. 
In december 2025, transportation prices registered a monthly drop of -1.17%, becoming one of the main factors driving the country’s overall deflation, which closed the month with a variation of -0.39%, according to data from the Banco Central de Reserva (BCR).
Transportation leads the drop in prices in december
Transportation was one of the groups with the largest monthly reduction in the Índice de Precios al Consumidor (IPC), with a negative impact of -0.12 percentage points on overall inflation for the month.
This behavior was decisive in the country’s deflation in december, reversing the price increase observed in november 2025.
What drove the decline in transportation?
1) Sharp reduction in transportation services
The most significant component was the decline in transportation services, which registered a monthly variation of -4.31%, contributing significantly to the reduction in the sector index.
This decrease may be associated with fare adjustments, lower seasonal demand at the end of the year, promotions, or changes in operating costs in the transportation sector.
2) Decrease in vehicle purchases
The vehicle acquisition subgroup also showed a negative variation of -0.14%, reflecting adjustments in prices for new cars and other vehicles, possibly influenced by international market conditions, commercial competition, and variations in import costs.
3) Changes in personal transportation operating costs
In contrast, personal transportation equipment operating costs rose by 0.55% due to maintenance, spare parts, and fuel expenses, although this increase was not enough to offset the overall decline in this category.
Impact on december deflation
The decline in transportation was one of the most important factors explaining december’s deflation, along with the reduction in food and energy.
Transportation has significant weight in the IPC basket, so variations in fares, vehicle prices, or associated costs have a direct effect on the overall price index and household spending.
Relief for households and businesses
The reduction in transportation prices means direct relief in:
• Family transportation expenses.
• Logistics costs for businesses and shops.
• Public and private transportation service fares.
This effect can translate into lower goods distribution costs, which also helps moderate prices in other sectors of the economy.
The 1.17% drop in transportation prices in december 2025 became one of the main factors driving deflation for the month, driven mainly by the sharp reduction in transportation services and adjustments in vehicle prices. This behavior provided temporary relief in mobility and logistics costs, although its sustainability will depend on factors such as international fuel prices, domestic demand, and tariff policies, according to data from the Banco Central de Reserva (BCR).
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