Guatemala: Inflation falls to over one-year low in January
Consumer prices fell 0.04% in January over the previous month, swinging from the 0.17% increase logged in December. January’s result marked the weakest reading since February 2020. The reading was driven by a notable drop in transport prices, food prices also decreased.
Inflation edged down to 2.9% in January, following December’s 3.1%. January’s figure marked the weakest inflation rate since June 2020. In addition, the trend pointed down mildly, with annual average inflation coming in at 4.1% in January (December: 4.3%).
Analysts at the EIU added:
“We expect steadier global oil prices to keep inflation […] within Banguat’s 3-5% target range in 2022-26. Higher fuel costs in year-on-year terms are likely to raise transport costs marginally. This means that, as core inflation excludes food and energy prices, it will remain stable at the middle of Banguat’s target range. Adverse weather conditions pose risks to this forecast.”