A. M. 
According to data presented by the Banco Central de Reserva (BCR), annual inflation in El Salvador reached -0.1% in october 2024. This figure represents a reduction of 2.7 percentage points compared to the same month of the previous year. On a monthly basis, inflation also showed a decrease of -0.3%, being 0.6 percentage points lower compared to the same period of 2023.
These results reflect a deceleration process in price increases, driven by various governmental measures. The policies implemented by the Government, aimed at strengthening agri-markets and combating speculation and hoarding practices, have been key to contain inflation in the country.
Year-over-year inflation in the food and non-alcoholic beverages category has shown a notable slowdown, driven by the decrease in the cost of various vegetables and fruits. In particular, there has been a decrease in the price of agricultural products such as tomatoes, carrots, raw beans, onions, potatoes and beans. Tomato leads this reduction with a -0.11% drop in monthly price, followed by carrot and raw beans, both with -0.03%. Other products such as onions and potatoes showed declines of -0.02% and -0.01%, respectively.
This downward trend in food prices directly benefits salvadoran households, especially in the context of economic recovery. The BCR also reported that inflation in october 2023 was 2.7%, 7.5% in 2022 and 5.5% in 2021, reflecting a notable deceleration in price increases in the country.
The decrease in inflation in El Salvador is the result of a combination of factors, including government intervention in the food market and price regulation.
