Ecuador’s inflation rate fell to 0.25% in February 2025, the lowest since June 2021. The rise in restaurant and hotel costs drove this increase, while prices for clothing, utilities, and food experienced declines. Consumer prices rose monthly by 0.09% following a previous decline.
As of February 2025, Ecuador’s annual inflation rate has decreased to 0.25%, marking the lowest level since June 2021. This represents a slight decline from the previous month’s rate of 0.26%. The increase in inflation is attributed mainly to rising costs in the hospitality sector, specifically restaurants and hotels, which saw a rise of 2.88% compared to January’s 2.74%.
Conversely, the prices of clothing and footwear have witnessed a decrease of 1.11%, a slight improvement from January’s decline of 1.24%. Additionally, housing and utilities have continued their downward trend with a reduction of 15.16%, slightly better than the previous month’s 15.26%. This performance reflects the country’s recovery from hydroelectric power shortages which had previously necessitated government subsidies.
Price reductions were also noted in the food and non-alcoholic beverage sector, which experienced a decrease of 0.11%, in contrast to an increase of 0.19% observed the month before. Furthermore, while transportation costs increased by 3.01%, this is a slight decrease from January’s 3.05%. Similarly, communications and recreation saw slower increases, with rates of 1.83% and 1.39% respectively, following previous monthly highs of 2.02% and 3.74%. On a monthly scale, consumer prices increased by 0.09% after experiencing a 0.15% decline in January.
In summary, Ecuador’s inflation rate has reached its lowest point since June 2021, at 0.25% in February 2025, primarily due to rising costs in hospitality. While certain sectors such as clothing and housing have seen price declines, reductions in food and beverage costs contributed to the overall inflation reduction. The changes in various sectors indicate ongoing adjustments and recoveries in the economy.
Original Source: www.tradingview.com
