Guatemala: Inflation continues to rise in October
November 9, 2012
In October, consumer prices rose 0.03% over the previous month, which was below the 0.49% increase recorded in September. According to the National Statistics Institute, the monthly print mainly reflected a sharp drop in housing prices which was offset by higher prices in most of the remaining categories. Despite the subdued monthly reading, annual headline inflation inched up from 3.3% in September to 3.4% in October, which represents the highest rate in four months. Meanwhile, the core inflation index added 0.25% over the previous month (September: +0.19% month-on-month), driving the annual core inflation to 3.5% (September: +3.4%). At its 31 October monetary policy meeting, the central bank decided to maintain the policy interest rate unchanged at 5.00%. The Bank justified its decision citing solid economic growth at home as well as its willingness to contain inflation in the mid-term.