Inflation

Prices for staple vegetables in San Pedro Sula have climbed sharply—lettuce reached L50 per pound (up from L25), onions L30, potatoes L30, and cabbage L15—as wet weather disrupts local and Guatemalan supplies.

Egg carton prices have jumped by up to 27 lempiras (about $1.08) in recent months, a rise that former Honduran Press Association president Osman Reyes says is eroding Hondurans' purchasing power.

Economist Fredy Tejada cautioned that Honduras faces obstacles in its sixth IMF agreement review, citing high current spending, budget execution below 50%, unfulfilled commitments to cut public-sector payroll, persistent inflation, and ongoing losses at the state electricity company.

Prices for eggs and fresh vegetables including lettuce, onions, and potatoes have climbed this week at Tegucigalpa's Farmers Market, with vendors citing production losses from excess water and higher feed and transport costs.

Foreign direct investment in Honduras reached $675.8 million in the first half of 2026, up 67.4% year-on-year, according to COHEP's October economic bulletin, which also shows 4.4% GDP growth and 6.28% annual inflation.

Honduras's bakers say production costs have risen 30% due to higher prices for flour, shortening, fuel, and electricity, and may raise bread prices starting in November to preserve product quality.

Soaring gasoline and diesel prices are forcing Honduran households to reduce spending on food quality, clothing, and recreation, with one Tegucigalpa mother reporting an extra 600 lempiras (about $24) weekly on fuel alone.

Poultry producers guarantee continued supply of chicken and eggs but warn that rising feed and input costs — corn up 35%, soybean oil up 40%, fertilizer up 120% — will drive further price increases, while the government pledges to monitor for excessive hikes.

Economist Sergio Zepeda says Honduras maintains stable macroeconomic conditions backed by foreign-exchange generation and international reserves ahead of the sixth and final International Monetary Fund review, but cautioned that gains must translate into concrete improvements in employment, poverty reduction, and living standards.

Honduras's Energy Ministry announced new fuel prices effective October 19, with premium gasoline falling despite rising international costs, while regular gasoline and vehicular LPG increase, as the government continues subsidizing certain fuels to limit inflation.

Honduras's money supply rose 10.0% in the year through October 1, down sharply from 18.2% a year earlier, reflecting the central bank's efforts to manage liquidity and ease inflation pressure.

Economist Ismael Zepeda warned that high inflation is directly weakening Hondurans' purchasing power and slowing domestic consumption, forcing families to choose between paying utilities, buying food, and purchasing fuel.

Drought across Honduras has driven onion prices up five lempiras per pound and potatoes up two lempiras per pound at major markets, squeezing household budgets as consumers report their food money no longer stretches far enough.

A regional study finds that extreme heat and rainfall push inflation across Central America, Panama, and the Dominican Republic for four to six months after the weather event, creating persistent price pressures beyond the immediate crisis.

The National Association of Industrialists says international tensions, Middle East conflict, rising fuel and energy costs, and dollar fluctuations account for roughly one-third to two-fifths of Honduras's inflation, with the Central Bank expected to revise its economic forecasts in coming weeks.

Honduras's Central Bank forecasts year-over-year inflation of 5.0% by December 2026, declining through September 2028 to settle within the monetary authority's target range of 4.0% ± 1.0 percentage point.

Year-over-year inflation on tradeable goods—those subject to international price swings—hit 6.95%, driven mainly by global fuel price fluctuations and rising shipping costs, the Central Bank reported.

Honduras's monthly consumer-price inflation decelerated to 0.48% in September from 0.79% in August, driven by slower price growth in food, beverages, transport, and personal care.

Year-over-year inflation in Honduras reached 6.28% in September, exceeding the Central Bank's tolerance range, according to the bank's monthly bulletin.

Prices for basic grains, eggs, and meat in San Pedro Sula have risen 1.50 to 2 lempiras per pound in recent weeks, reducing purchasing power and forcing families to buy less as vendors report 25–30% drops in sales.

Economists discussed whether Honduras should cut or eliminate fuel taxes—which generate roughly L14 billion (about $560 million) annually, or 7.5% of state tax revenue—to ease inflation and household costs, though analysts warned such a move would require immediate budget reforms or alternative funding.

Honduras's annual inflation hit 6.2% through August 2026, with food prices rising 5.57%, prompting the central bank to raise its monetary policy rate to 6.0% on September 21 to contain price growth.

Diesel fuel prices in Honduras surged 77% from January to September 2026, rising from L81.27 to L149.20 per gallon and surpassing 2022 highs, straining transport operators and household budgets across the country.

The Honduran business council reported food and beverage inflation of 5.57% in August, citing drought conditions from El Niño and higher transport costs, while overall inflation reached 6.20% and private-sector credit grew 20% through June.

Diesel, kerosene, and gasoline prices in Honduras surged to their highest levels since at least 2022, with diesel rising nearly 63 lempiras per gallon in Tegucigalpa between March and September; regionally, Honduras is cheaper than Guatemala but more expensive than El Salvador.

Economists forecast Honduras will end 2026 with inflation above 6%, exceeding the central bank's 5% target, as fuel and food prices surge despite a recent interest-rate increase.

Fosdeh researcher Jorge Henríquez warns that sustained inflation is forcing Honduran families to reduce food intake and nutrition, shift to cheaper staples, and take out loans to cover basic monthly expenses.

Honduras's year-on-year inflation climbed from 3.46% in February to 6.20% in August 2026, driven largely by rising international oil prices, prompting the central bank to take steps to contain the impact.

Food prices across Honduras's basic basket are climbing due to fuel costs and weather damage, threatening families' ability to afford traditional holiday meals in December, warns a food-security researcher at UNAH.

Honduras's Central Bank raised its benchmark interest rate by 0.25 percentage points to 6%, effective Monday, citing inflation that reached 6.2% in August and exceeded the target range.