Food prices are decreasing according to INEC

According to the report released yesterday by the National Institute of Statistics and Census (INEC), the pace of price growth slowed in May recording a monthly variation of -0.22%, compared to 0.18% of last April and the -0.19% of May, 2012.

In addition, the annual change in the Consumer Price Index (CPI) was 3.01% and cumulatively, of 1.09%, compared to annual inflation of 4.85% and 2.22% cumulative of May 2012.

The Institute attributed the decrease to the price inflation of three categories: food and beverages, transportation and education, which have contributed to the 98.34% to the decrease in the CPI.

• Food and non-alcoholic was -0.90%, and contributed to the reduction of the price index with 83.24%.
• Transportation was -0.32%, and contributed to the reduction of the price index with 11.93%.
• Education was -0.13%, and contributed to the reduction of the price index with 3.17%.

Inflation rate Chart

On the other hand, Victor Hugo Alban, president of the Colegio de Economistas de Pichincha, completely disagrees with INEC data and ensures that only food inflation was 1.7% in May as it “has been a month characterized by a strong winter in the central-south area of the country, making it difficult to transport food to the coast, increasing their prices. “