Inflation of January 2013 exceeded inflation of last December

According to the report released yesterday by the National Institute of Statistics and Census (INEC for its Spanish acronym), inflation in January this year (0.50%) represents a strong acceleration compared to the negative inflation of last December (-0.19%).

While inflation in January was mainly due to higher prices of divisions: food and non-alcoholic beverages, restaurants and hotels, and transportation, which together account for the 72.91%, the INEC reported that Alcohol, Tobacco and Narcotics are the products with higher price growth recorded.

Alcohol price rising has affected total inflation.

The monthly rate of price growth of this group was 2.28%.

President of the Association of Economists of Pichincha, Victor Hugo Alban matches the INEC to attribute the behavior of prices in January and the highest price growth in the Food and Beverage category. He explains that in this division, the products whose prices have soared more are seafood, potatoes, peas and carrots.

Food price rising has also affected total inflation on a large rate.

Alban stresses that the prices of food and drinks are the ones recording a highest growing rate, while alcoholic drinks, although describing acceleration, have less weight in the family basket.