Andean Group - September 2017 (ISSN 1741-4466)

Inflation: The consumer price index rose by a nominal 0.02% month-on-month in August. This followed deflation in June and July, reflecting weak consumer demand. Indeed, annualised inflation in August was only 0.3%, down from 1.4% in the same month a year earlier, with deflation recorded by the national statistics institute (Inec) in five of the 12 months since August 2016. Ecuador has not seen inflation as consistently low as this since dollarisation in 2000. When in office, Correa did not conceal his frustration with dollarisation, because of the constraints it places on monetary policy, although he never made any attempt to abandon the currency and restore the sucre.

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