The rise in consumer price also halted to an end in June. Not only the CPI YoY growth rate down to 1.1% in June from 1.3% in May, the MoM growth rate also declined by 0.4% during the past month. The slump in CPI price is largely driven by the big drag from the volatile component. In particular, pork price decelerated by -36.5% YoY in June. But pork is not the only food factor dragging down CPI. The vegetable price growth rate also dropped to 0.1% YoY from 5.4% YoY last month.

Fernando Alberca | For the Salvadorian president, Nayib Bukele, the impact of this measure will be very positive: “In the short term, this will generate jobs and help bring financial inclusion to thousands of people outside the formal economy. And in the medium and long term, we hope this small decision can help us push humanity, at least a little bit, in the right direction.”Although the US dollar is the official currency in El Salvador, remittances of dollars from Salvadorian emigrants have to pay high commissions to banks and intermediary exchange houses to transfer them to their home country.