{"id":38731,"date":"2014-08-10T23:51:21","date_gmt":"2014-08-11T03:51:21","guid":{"rendered":"https:\/\/www.escapeartist.com\/?p=38731"},"modified":"2021-03-01T16:07:30","modified_gmt":"2021-03-01T21:07:30","slug":"ecuador-inflation","status":"publish","type":"post","link":"https:\/\/www.escapeartist.com\/blog\/ecuador-inflation\/","title":{"rendered":"Ecuador Inflation"},"content":{"rendered":"

Ecuador – Riding the Rising Tide of Lower Inflation<\/span><\/strong><\/p>\n

Ecuador<\/a> registered its lowest inflation numbers in eight years for 2013.\u00a0 The official figures reported are 2.7% annual inflation rate, as noted by the National Institute for Statistics & Census, here in Ecuador.\u00a0 The recorded inflation rate for the month of December 2013 is\u00a0 a mere 0.20%.<\/p>\n

The inflation measures, as per the norm, are gathered from what is considered a \u201cbasket of consumer goods\u201d.\u00a0 In the Ecuadorean basket, food and non-alcoholic beverages has the heaviest weighting at 35.26%.\u00a0 It should be noted that these consumer-oriented inflation figures are still somewhat weak in tracking some primary consumer demand items, such as housing, in a market like Ecuador where the accurate tracking of inflation data is still in the nascent stages.<\/p>\n

For a moment, overlooking the preceding, it is important to note that the city of Guayaquil, commercial capitol of Ecuador, showed the highest inflation rate, followed by the coastal city of Manta.\u00a0 In a somewhat surprising statistical find, Quito and Cuenca both showed strongly improved numbers, with a trend towards lower inflation rates than the national average<\/p>\n

As is often said, the \u201cDevil is in the details\u201d.\u00a0 While doing a comparative analysis of Ecuadorean inflation data, much of which is historically derived using similar means, it is a heartening and very positive consumer trend in Ecuador, to see the lowest inflation rates in eight years.\u00a0 There is no way to color the trending pattern in any way but positive.<\/p>\n

However, much like inflation data in other countries, the USA as one example, one can\u2019t help but question the raw data and, thus, ultimate validity, of the Ecuadorean inflation numbers.\u00a0 The weak capture of housing appreciation, as one example, immediately calls into question the overall validity of the reported figures.\u00a0 While true that in many of the more isolated and remote parts of Ecuador, real estate is seeing no inflationary pressures, in many of the major cities and coastal towns, price appreciation in the real estate market cannot be denied.\u00a0 It is difficult to assess exactly how accurately such data is being captured in the overall positive inflation figures reported from Ecuador.<\/p>\n

For further information, check out this podcast from The Expat Money Show with Mikkel Thorup<\/a> – 110: How To Move To Ecuador Complete Master Class \u2013 Marcos Chiluisa<\/a><\/p>\n

Again, the preceding has become the standard ‘du jour’ for just about any nation reporting inflation figures. That is why I routinely argue that studying inflation data is more trend analysis than detailed fact.\u00a0 All nations wish to present their inflation figures in the most flattering light and tend to overlook or hedge against some of the more prominent inflationary factors.\u00a0 As contrast, one would be more likely to believe in Tinkerbell than to believe the inflation numbers coming out of Washington, D.C. for decades.\u00a0 A trip to the grocery store is sobering in the USA.\u00a0 Ecuador appears to offer little variance from the \u201cput on your best face\u201d global trend, when nation-states report inflation data.<\/p>\n

In summation, I would suggest that any expat or would be expat place these Ecuadorean inflation numbers in stark perspective.\u00a0 There is much positive in them, as they show that in many core market segments, such as foodstuffs, inflation is being held at very modest levels.\u00a0 When one looks at Ecuador inflation figures over a 20 year trending pattern, the success of the President Correa Administration efforts at stemming inflation become crystal clear.\u00a0 Follow the trend and Ecuador\u2019s inflation rate success, becomes evident.<\/p>\n

However, astute Ecuadorean investors, expats and would be expats might want to analyze the official figures a bit more closely.\u00a0 They should attempt to better understand the price pressures building up in select real estate rental markets, as well as real estate sales markets.\u00a0 They should examine the rising costs of luxury vehicles.\u00a0 As healthcare improves dramatically under the Correa Administration\u2019s ambitious medical modernization program, some inflationary pressures are creeping into the private healthcare sector.\u00a0 The point is that the impressive 2.7% rate figure for Ecuador inflation in 2013 is an exceptionally accurate trending barometer, but should not be taken as \u201cGospel\u201d when ascertaining precise accuracy.<\/p>\n

Overall, however, Correa\u2019s Ecuador has managed to walk that thin line between high growth and low inflation, precisely at a time when much of the world is seeing abysmal growth prospects and rising inflation.\u00a0 No matter how you analyze both the trends and the specific data, measured on a global comparative basis, Ecuador is sitting pretty on the inflation front.\u00a0 Just one more reason why the country is such an attractive option for those choosing to live, work or invest in Ecuador.<\/p>\n","protected":false},"excerpt":{"rendered":"

Ecuador – Riding the Rising Tide of Lower Inflation Ecuador registered its lowest inflation numbers in eight years for 2013.\u00a0 The official figures reported are 2.7% annual inflation rate, as noted by the National Institute for Statistics & Census, here in Ecuador.\u00a0 The recorded inflation rate for the month of December 2013 is\u00a0 a mere […]<\/p>\n","protected":false},"author":308,"featured_media":38738,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","om_disable_all_campaigns":false,"footnotes":"","_jetpack_memberships_contains_paid_content":false},"categories":[3],"tags":[],"yst_prominent_words":[3380,7731,31796,31791,31788,30497,31793,31787,31786,31789,31790,31794,5249,31797,31798,19547,31792,3040,1878,31795],"acf":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/www.escapeartist.com\/wp-content\/uploads\/2020\/08\/Why-You-Should-Invest-In-Ecuador.jpg","_links":{"self":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/38731"}],"collection":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/users\/308"}],"replies":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/comments?post=38731"}],"version-history":[{"count":3,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/38731\/revisions"}],"predecessor-version":[{"id":44329,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/38731\/revisions\/44329"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/media\/38738"}],"wp:attachment":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/media?parent=38731"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/categories?post=38731"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/tags?post=38731"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/yst_prominent_words?post=38731"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}