Consumer prices in Ecuador, which uses the U.S. dollar as its official currency, fell in May at the fastest pace since August 2009, as the rainy season ended, easing supply chain problems and cutting food costs.
Prices declined 0.19 percent from April, the National Statistics and Census Institute said today in a report on its website. Annual inflation slowed to 4.85 percent from 5.42 percent.
Food prices fell 0.88 percent from a month earlier after the end of above-average rainfall that caused about $223 million of damage to crops, washed out roads and disrupted supplies.
Consumer prices fell the most in the highland city of Ambato, sliding 0.45 percent in May from the previous month, while prices dropped 0.06 percent in the nation’s largest city, Guayaquil, the agency said.
Annual inflation will average 5.14 percent this year, compared with 4.47 percent in 2011, according to the Finance Ministry’s 2012 budget.
Producer prices increased 1.43 percent in May from the previous month and 5.84 percent from May 2011, today’s report said.
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