Prices fell for third consecutive month in Ecuador

The National Institute of statistics and censuses (INEC) published yesterday on its website that during the month of July it was registered a deflation of  0.02%, while in June it was 0.14% and 0.22% during May.

According to information released by the INEC, among the products with a significant descrease in their prices, are the kidney tomato, bread, dry beans, papaya, flower rice, paitena onion, whole chicken.

The researcher of the economic letter, José Mieles, believes that inflation in July is a result of the slowed economy, which began in the first quarter of this year with a growth of 3.5% compared to 6.1% in the same period in 2012.

Santiago Garcia, director of the Institute of economic research of the Central University, believes that the decline in prices of July coincides with the economic activity that decreases especially between July and August, basically by the holidays.

For his part, Alberto Acosta Burneo, editor of weekly analysis, indicates that the decline in food prices is more noticeable in the coast and especially in Guayaquil. He attributes it to a weak demand, which is explained with the reduction of the numbers of full employment in the second quarter of 2013 and which was strongest in the main port.