Ecuador’s inflation rate fell to 0.25% in February 2025, the lowest since June 2021. The rise in restaurant and hotel prices contrasted with declines in clothing and housing utilities. Monthly consumer prices increased by 0.09%, suggesting stabilization in inflation despite fluctuations in various sectors.

In February 2025, Ecuador’s annual inflation rate dropped to 0.25%, the lowest since June 2021, down from 0.26% in January. This decrease is attributed to various factors affecting different sectors of the economy. Higher expenditures in the restaurant and hotel sector rose to 2.88%, contributing to inflation, while clothing and footwear prices declined, showing a lesser drop of -1.11%.

The housing and utilities sector also noted a decrease, with prices declining by -15.16%, slightly better than the previous month’s -15.26%. Peace restored in hydroelectric power supplies allowed a recovery in essential services. Conversely, food and non-alcoholic beverages saw prices fall by -0.11%, a shift from the previous month’s increase.

Transportation costs rose at a slower pace of 3.01%, down from 3.05%, while communications and recreation sectors also experienced subdued inflation rates of 1.83% and 1.39%, respectively. Month-over-month, consumer prices increased by 0.09% after a -0.15% drop in January, indicating a stagnation in the inflationary trends.

Ecuador experienced a significant decrease in its inflation rate, reaching the lowest level since mid-2021. The mixed trends in various sectors — rising costs in hospitality, while prices fell in clothing, housing, transportation, and food — highlight the complexities of the economic landscape. This monthly consumer price increase further reflects the ongoing adjustments in the country’s economy.

Original Source: www.tradingview.com