Guatemala: Inflation rises in March
Consumer prices jumped 1.50% month-on-month in March, up from 0.42% in February. The print came on the back of skyrocketing transport prices, while prices for housing and food also rose notably.
Inflation rose to 4.2% in March from February’s 3.0%, overshooting the midpoint of the Central Bank’s 3.0–5.0% target range and marking the highest print since May 2021. Annual average inflation fell to 3.7% in March (February: 3.8%).
Analysts at the EIU added:
“We expect the rise in global oil prices to raise inflation to above the upper end of the 3.0-5.0% target range set by Banguat in 2022–23. Higher fuel costs in year-on-year terms are likely to raise transport costs and have spillover effects on core inflation (excluding food and energy prices). Adverse weather conditions pose risks to this forecast. However, we don’t expect inflationary pressures to linger for the remainder of the 2024–26 forecast period, as the supply shock fades and monetary tightening takes effect amid the anchoring of inflation expectations.”