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Ecuador’s annual inflation rate hit a 20-month high in January 2026, driven almost entirely by a 20.79% spike in housing and utility costs after the government ended electricity and diesel subsidies. Food prices are rising too — plantains have roughly doubled, and the basic family basket now costs $822 a month.
Washington and Quito have 'substantially concluded' negotiations on a reciprocal trade agreement set to be signed in coming weeks. But Ecuador's biggest non-oil export to the U.S. — shrimp worth $2 billion a year — may not get the tariff relief the industry needs to survive.
Heavy rains have inundated 700 hectares of farmland in Guayas province, putting approximately 38,000 agricultural producers at risk. Rice, corn, and cacao crops are the most affected as the rainy season intensifies heading into Carnival weekend.
