Guatemala: Inflation picks up in May
June 6, 2016
In May, consumer prices rose 0.46% over the previous month, which came in above the 0.17% rise tallied in April. In May, prices for food and non-alcoholic beverages increased the most over the previous month, while prices for recreation and culture saw the largest monthly decline.
Inflation rose from 4.1% in April to 4.4% in May. Inflation is still within the Central Bank’s tolerance margin of plus/minus 1.0 percentage points around its target of 4.0%.
At its 25 May monetary policy meeting, the Bank of Guatemala decided to keep its policy rate at 3.00%. In its brief press release, the Bank stated that it sees the global recovery continuing, although at a slower pace, and that prices for commodities remain low. Regarding the domestic economy, the Central Bank pointed out that economic activity had continued to grow according to its previous estimate. This is evidenced by the monthly indicator of economic activity and growth of private sector credit. The Bank added that it expects inflation to remain within its target range this year and in 2017.
Author: Robert Hill, Economist