Country’s inflation rate remains negative; Ecuador leads Latin America in lowest inflation rate

Ecuador’s inflation rate for July was -0.14%, the third consecutive month of modest decline. For the year, according to the National Institute of Statistics (INEC), inflation is running at a negligible one-tenth of one percent.

Carlos de la Torre, right

The purchases that contributed most to negative inflation in July, said INEC, were food and non-alcoholic beverages, recreation and cultural activities. Those that were slightly inflationary were rent, water, electricity, gas, and health services.

Cities leading the trend to lower prices were Santo Domingo, Esmeraldas, Guayaquil, Quito and Cuenca.

Reacting to the latest inflation report, Ecuador Finance Minister Carlos de la Torre said that stable numbers should make Ecuador attractive to foreign investment. “With the changes we are planning to improve the country’s investment environment, the recebt inflation reports are very encouraging,” he said. “We have the lowest rate in the entire region and this is important for those considering investment since investors appreciate predictability.”

Among Andean nations, Colombia’s inflation rate is 10%, Peru’s is 7% and Venezuela’s is an estimated 750%. “Inflation is a major problem for South America’s largest economies, Brazil and Argentina, where inflation is 14% and 22%,” de la Torre added.