Guatemala Inflation


Inflation falls in January

In January, consumer prices jumped 0.83% over the previous month, which was well above the 0.08% price increase observed in December. Higher prices for food and beverages, as well as for housing drove the monthly rise. Despite the monthly increase, annual headline inflation fell from 5.4% in December to 4.9% in January. Meanwhile, the core inflation index, which excludes more volatile categories such as food and fuels, added 1.03% over the previous month, pushing annual core inflation to 3.4% in January, up from 3.1% in December. The Central Bank expects inflation to close this year at 5.9%. Moreover, monetary officials decided to keep the inflation target at 5.0% 1% for this year and to lower it to 4.5% 1% for 2012.

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