Guatemala: Inflation drops to five-year low in January
February 10, 2015
In January, consumer prices fell 0.36% over the previous month, which followed the 0.11% drop tallied in December. January’s result marked the lowest reading in almost six years. The decline in consumer prices mainly resulted from lower prices for transportation and housing.
Annual headline inflation dropped from 3.0% in December to 2.3% in January, which marked the lowest result in five years. Inflation now rests well below the lower bound of the Central Bank’s tolerance margin of plus/minus 1.0 percentage points around its target of 4.0%.
At its 26 November monetary policy meeting, the Central Bank decided to reduce the policy interest rate from 4.50% to 4.00%.
Author: Cecilia Simkievich, Economist