Basic food basket in El Salvador: analysis of prices, inflation and food security

Abstract

The purpose of this article is to show the different variations in prices and costs of the products that make up the Basic Food Basket (BFB) in El Salvador, by analysing the composition of products, price evolution, price index and its relationship with food security; to do so, we define what the Basic Food Basket is, the price index and others that allow us to analyse the behaviour of prices and their impact on the cost of the basket. We also highlight the products that have experienced the greatest price increases, such as meat, fruit and flour, among others. It also analyses the relationship between the CBA and food security, and highlights concerns about the impact of rising prices on low-income households. This is reflected in the increase in extreme and relative poverty: in 2019 there were 89,373 households and in 2022 there were 170,362 households in extreme poverty, showing a 94.98% increase in the number of households in extreme poverty. In the case of relative poverty, in 2019 there were 354,923 households, and in 2022, 358,3778 households, which is equivalent to 0.97% growth, which, from a relative point of view, is minimal compared to extreme poverty.