El Salvador reports second-highest regional inflation increase

San Salvador, Jul 4 (Prensa Latina) El Salvador has recorded the second-highest rise in inflation in Central America, although it maintains one of the lowest rates in the region, the Executive Secretariat of the Central American Monetary Council (Secmca) reported.

July 7, 2026
13:02

A recent report by the regional body pointed out that Salvadoran inflation shifted from a negative rate of 0.21 percent in May 2025 to 2.53 percent in the same month of 2026, representing an increase of 2.74 percentage points.

Only Panama reported a larger increase, moving from 0.55 percent to 2.38 percent—equivalent to 2.93 percentage points—while Nicaragua recorded an increase of 2.43 percentage points, raising its inflation from 1.29 percent to 3.72 percent.

Despite the increase recorded over the past year, Panama and El Salvador show the lowest inflation rates among Central American economies, according to official Secmca statistics.

The organization attributes this trend to the rising international cost of fuel, driven by geopolitical tensions in the Middle East following the aggression by the United States and Israel against Iran.

The attacks affected the oil market and generated higher logistics costs, impacting consumer prices.

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