Ecuador’s annual inflation rate fell to 0.25% in February 2025, the lowest since June 2021, driven by increasing costs in restaurants and hotels. Prices for clothing, footwear, housing, and utilities decreased, while food prices also fell. Monthly consumer prices rose by 0.09%, following a prior decrease.

In February 2025, Ecuador experienced an annual inflation rate decline to 0.25%, the lowest since June 2021, slightly decreasing from 0.26% the prior month. This change was mainly influenced by rising costs in services such as restaurants and hotels, which saw an increase of 2.88% compared to 2.74% in January. Meanwhile, prices for clothing and footwear decreased by 1.11%, and housing and utilities fell by 15.16%, showing a recovery from prior hydroelectric power shortages that had necessitated government subsidies.

Additionally, food and non-alcoholic beverage prices experienced a decline of 0.11%, previously increasing by 0.19%. Transportation costs slightly decreased to 3.01% from 3.05%, and communications and recreation and culture sectors saw reduced inflation rates, falling to 1.83% from 2.02% and 1.39% from 3.74%, respectively. In monthly terms, consumer prices increased modestly by 0.09% after a decrease of 0.15% in January 2025.

Ecuador’s inflation rate has reached its lowest point since June 2021, now at 0.25%. This reduction highlights changes in various sectors, including increased costs in restaurants and hotels, alongside a decline in clothing and housing prices. Furthermore, prices for food and non-alcoholic beverages fell, while consumer prices increased slightly on a monthly basis, indicating a gradual recovery in the economy.

Original Source: www.tradingview.com