Ecuador Low Inflation Reading In May Driven By Temporary Electricity Subsidies

Ecuador's headline inflation fell to 0.92% yoy in May, primarily due to a significant, temporary reduction in electricity costs. Core inflation remains stable, and the headline figure is expected to rebound as electricity subsidies expire.

Key Takeaways

• 1.Consumer prices in Ecuador declined by 0.62% month-over-month in May, largely due to a transitory 42.4% drop in electricity prices.
• 2.The sharp decline in headline inflation is expected to reverse in June as temporary electricity subsidies are phased out.
• 3.Core inflation, excluding food and energy, remains mild, growing 0.05% month-over-month and 1.74% year-over-year.

Table of Contents

• KEY NUMBERS (May):
• DETAILS:
• Disclosure Appendix