El Salvador Food Inflation Falls to Region’s Second-Lowest in July
Food and non-alcoholic beverage prices in El Salvador rose 2.49 per cent in the year to July, down from 3.02 per cent in June, the second-lowest food inflation reading in Central America. The post El Salvador Food Inflation Falls to Region’s Second-Lowest in July appeared first on The Rio Times .
El Salvador's food inflation rate decelerated to 2.49 per cent in July, the lowest since February 2026, according to the Central Reserve Bank. This marks the second-lowest rate in Central America, surpassed only by Costa Rica. The Central American Monetary Council's secretariat reports that food prices are falling in Costa Rica, contributing to its deflationary trend.
El Salvador's food and non-alcoholic beverages division, the largest component of the consumer price index, saw a 2.49 per cent annual variation in July, down 0.53 percentage points from June's 3.02 per cent. The deceleration in food inflation follows smaller increases in food, beverages, health, and restaurant prices. El Salvador's inflation rate is currently the third-lowest in Central America, behind Costa Rica and Panama.
Analysts attribute this improvement to the country's dollarised economy, which anchors import prices, and the easing of fuel and food costs after the 2025 spike. This relief in household budgets is particularly significant for El Salvador, as it faces persistent questions over public debt and formal job creation. The International Monetary Fund projects El Salvador's inflation to be among the lowest in Latin America this year, with the Central Reserve Bank expecting growth of 3 to 3.5 per cent in 2026.
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