Ecuador's May inflation rate falls to 0.92%, down from April's 2.60%

Ecuador experienced a notable slowdown in inflation in May, with the year-on-year rate dropping to 0.92%. This figure represents a substantial decrease from the 2.60% recorded in April, according to data released by the National Institute of Statistics and Censuses (INEC).

The monthly inflation rate for May was negative, standing at -0.62%. This decline was primarily driven by reduced consumer prices in categories such as housing, water, electricity, gas, and other fuels, as well as a slight decrease in the cost of food and non-alcoholic beverages.

Within the housing and utilities sector, the cost of electricity consumption saw a significant inflation of 42.39%. This surge in April was attributed to higher temperatures exceeding 35 degrees Celsius in some coastal areas, leading to increased energy usage. In response to power outages in affected regions, the government announced a subsidy on electricity bills for consumption up to 180 kilowatt-hours.

The INEC measures inflation by tracking 359 products across nine major cities in Ecuador. In May, the basic family basket cost $821.47. The average monthly household income was reported as $899.73, indicating that income covered 109.53% of the basic family basket's cost.