Ecuador's Inflation Now Measures Spending That Was Marginal a Decade Ago

Ecuador's National Institute of Statistics and Censuses (INEC) has updated its methodology for calculating inflation, incorporating a wider range of consumer spending, including services like streaming, app-based transport, video game consoles, and even funeral services. This revision aims to more accurately reflect the evolving consumption habits of Ecuadorian households.

The updated Consumer Price Index (IPC) now tracks 532 goods and services, a slight increase from the previous 506. Crucially, the base period has been shifted to July 2025-June 2026, moving away from the 2014 base. This change signifies a recognition that spending patterns have dramatically shifted over the last decade, rendering older metrics less representative of current economic realities.

Jeaneth Torres, a professor at the Universidad Internacional del Ecuador, clarified that the inclusion of services like streaming does not classify them as necessities. Instead, their incorporation is driven by their "representative" nature in household budgets. "One thing is being necessary, and another is being representative of consumption," Torres explained. If these expenses have become frequent and constitute a significant portion of household spending, they must be statistically considered.

Fernando Larrea Estrada, president of the College of Economists of Pichincha, concurred, noting that spending patterns have changed significantly. "Fifteen years ago, it was not relevant to measure these consumptions that were marginal," he stated. The updated basket includes items like audiovisual subscriptions replacing video and sound players, laptops and gaming consoles replacing cameras, and internet services alongside combined telecom packages. In transportation, app-hailing services are now considered alongside taxis and rental cars. Even food categories have seen additions like blueberries and kiwi, while funeral services and educational books have been added, reflecting broader societal changes.