FX.co ★ El Salvador Inflation Falls for 5th Straight Month

In August 2025, El Salvador experienced a 0.11% year-over-year decrease in consumer prices, a marginally smaller decline compared to the 0.14% reduction observed in June. This marks the fifth consecutive month of deflation. The most significant contribution to this ongoing trend came from food and alcoholic beverages, which fell for the eleventh consecutive month, recording a decrease of 1.24%, slightly less pronounced than July's 1.85% decline. Other sectors witnessing price reductions included transport, with a notable drop of 3.78% from 2.12%, clothing and footwear which decreased by 0.79% versus 0.86%, household goods down to 1.25% from 0.77%, and communication, which declined by 0.35% compared to 0.44%. In contrast, some areas saw price increases: restaurants and hotels rose by 2.86%, compared to 2.79% previously; healthcare climbed to 2.07% from 2.15%; and housing and utilities increased to 2.21% from 2.38%. On a month-by-month basis, consumer prices dropped 0.36% in August, following a rise of 0.33% in July.