Honduras Economy News

The Energy Ministry announced fuel price reductions of 5 centavos to 2.25 lempiras (roughly 2 cents to 90 cents USD) starting Monday, citing a recent 5% surge in global oil prices from escalating US-Iran tensions that limited deeper cuts.

Coffee producer Víctor Barahona projects Honduras's coffee exports will reach $2.5 billion this season.

The Finance Ministry has completed transfers to Honduras's 298 municipalities through June, allowing local governments to continue executing projects and delivering services.

Honduras's vehicle fleet grew to 3.6 million units in 2025, with motorcycles accounting for over half the increase and now representing 50.12% of all registered vehicles, driven by lower prices, easy financing, and fuel efficiency.

Honduras's consumer-protection committee (CODECOH) will begin price-monitoring raids in Tegucigalpa this week, warning that shops charging above official prices will face legal penalties.

Potatoes at the Farmer and Artisan Fair near the National Stadium in Tegucigalpa have risen to 28 lempiras per pound (about $1.12), while dairy prices have fallen.

The Central Bank of Honduras auctioned $80.1 million in its July 10 currency sale, setting the average exchange rate at L26.7635 per dollar for July 11–13.

Honduras's monthly inflation rate dropped to 0.19% in June 2026, the lowest for that month since 2020 and down 0.63 percentage points from May's 0.82%, marking the second consecutive month of decline.

The National Autonomous University reports the basic food basket rose 800 lempiras (about $32) over a year, but the government puts the increase at 244 lempiras, amid broader inflation running 5.83% annually against an official target of 4%.

Potato prices at Tegucigalpa's El Lempirita market climbed to L25 per pound (about $1 per pound) due to reduced harvests from March-to-May drought, part of broader food-cost pressure straining household budgets.

A Fosdeh economist warns that roughly 37 billion lempiras in unaccounted money emitted by the previous administration could stoke inflation, though he notes that inflation stems from multiple causes including import dependence, fuel costs, and climate-driven agricultural shortfalls.

Year-over-year inflation in Honduras eased to 5.83% in June, moving toward the central bank's medium-term target range of 4.00% plus or minus 1 percentage point.

Honduras's Consumer Protection directorate says it has conducted over 7,000 inspections in four months, detecting expired merchandise and card surcharges, while publishing weekly reference prices from wholesale markets to curb price speculation on basic goods.

Finance Secretary Emilio Hernández Hércules said Honduras is proceeding with an open auction of the presidential aircraft and plans to issue up to 16 billion lempiras (about $640 million) in bonds, with proceeds aimed at paying accumulated debts to electricity generators and addressing the state power utility's financial crisis.

An economist at Honduras's national university says the state power utility's financial crisis, unresolved across multiple administrations, risks becoming unsalvageable if deterioration continues.

Honduras will lower prices for gasoline, diesel, and kerosene on July 13, while maintaining domestic cooking-gas prices under a government subsidy, according to the Energy Ministry.

A Fosdeh economist attributes a recent increase in remittances to Honduras partly to Hondurans in the United States sending money home due to deportation concerns, while others continue migrating and supporting their families abroad.

The Central Bank auctioned $82.7 million in its daily currency sale on July 9, setting the official exchange rate at L26.7528 per dollar for July 10.

Roberto Lagos, president of the Central Bank of Honduras, said July inflation data should show a deceleration, and the bank will review monetary-policy instruments to reduce excess money supply without harming credit growth, which has risen 6.7% in the first seven months of 2026.

Honduras expects to earn $2.4 billion from coffee exports by September 30, when the current coffee year ends, with 6.8 million quintals already shipped and 120,000 producers supporting roughly one million jobs across the sector.

The Central Bank of Honduras auctioned $92.1 million in its July 8 foreign-exchange sale, setting the weighted average exchange rate at L26.7494 per dollar for July 9.

A year-long drought has reduced agricultural supply and driven up prices for everyday produce, with the basic food basket rising 6.16% (about 800 lempiras / $30) since June 2025, and the food-security observatory warning that 2.8 million Hondurans could face food insecurity by year-end.

Honduras's public-sector workers' union (ANDEPH) is preparing a formal proposal to the government for a 3,000-lempira (about $120) salary increase for roughly 120,000 state employees, citing a year without significant raises and inflation exceeding 4.5%.

Former president of Honduras's economists' association Liliana Castillo projects the lempira could depreciate to 27 per US dollar by September if it continues declining at its current rate of about 6 centavos monthly, a gradual depreciation she says would cushion domestic prices better than a sharper drop.

The organization Sendas warned that Honduras's planned electricity-sector reform needs a dedicated, autonomous administrator with real decision-making power to implement structural changes, noting that fragmented responsibility across multiple agencies and weak institutional continuity have hindered past efforts.

Frequent blackouts across Honduras are causing daily losses to small and medium-sized businesses, with some municipalities reporting up to 14 outages daily and Congress stalled on energy reforms.

Family remittances to Honduras reached $11.9 billion in 2025, benefiting 3.1 million recipients and representing 30% of GDP, though growth rates are slowing compared to 2024.

The private-sector business council estimates that power outages—averaging 21,200 hours of unmet demand annually—cost Honduras about L1.2 billion (roughly $48 million) per year in lost productivity, equipment damage, and generator expenses, while the government pushes stalled reforms to strengthen the state electricity utility.

Agriculture authorities will allow only processed pork products from disease-free zones in Spain, maintaining a ban on fresh pork imports to protect domestic producers and prevent disease entry.

The head of Honduras's land-transport authority said the government may call taxi operators to negotiate a rollback of the L5 provisional fare increase granted during higher fuel prices, if pump prices continue to decline.