Guatemala: Inflation bounces back in September
October 8, 2012
In September, consumer prices rose 0.49% over the previous month, which was slightly above the 0.45% increase recorded in August. According to the National Statistics Institute, the monthly rise was broad-based, as all but one category increased over the previous month. In particular, transport as well as food prices reported the largest gains. Annual inflation rose from 2.7% in August to 3.3% in September. The print represents the highest rate in three months and reversed a downward trend in place since January. Moreover, the core inflation index added 0.19% over the previous month (August: +0.39% month-on-month), driving the annual core inflation to 3.4%, which is unchanged from August. At its 26 September monetary policy meeting, the central bank decided to maintain the policy interest rate unchanged at 5.00%. The Bank justified its decision highlighting higher inflationary expectations in the mid- term.