A. M. El Salvador registered -0.06% inflation in february, according to an update of data compiled by the Fundación Ciudadana por un Consumo Responsable. This performance places it among the few countries in Latin America and the Caribbean where prices did not increase in the second month of the year.
In the Central American region, only Guatemala (-0.25%) and Costa Rica (-0.01%) accompanied El Salvador with similar inflation figures. Meanwhile, countries such as Honduras (1.15%) and Nicaragua (0.96%) reflected increases in consumer prices.
The decrease in prices in El Salvador could be influenced by factors such as the stability in fuel costs and certain basic food basket products. This allows consumers to maintain their purchasing power without facing abrupt increases in essential goods and services.
In contrast, Argentina recorded the highest inflation in the region in february, with 2.4%, followed by Brazil (1.31%) and Bolivia (1.26%). These countries face greater difficulties in controlling prices, which impacts the purchasing power of the population.
While negative inflation can be interpreted as a sign of stability in living costs, it can also generate economic challenges, such as lower profitability for businesses and a slowdown in consumption. However, in the Salvadoran context, lower prices could represent a relief for consumers.
El Salvador remains one of the economies with the lowest inflation in the region, which could generate a more predictable environment for consumers and businesses. However, analysts warn that it will be key to monitor the evolution of prices in the coming months to assess their impact on economic activity.
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