Guatemala: Inflation edges up to a five-month high
August 8, 2014
In July, consumer prices rose 0.57% over the previous month, which followed the 0.53% increase recorded in June. The print mainly reflected higher prices for food, recreation and for hotels and restaurants.
Annual headline inflation edged up from 3.1% in June to 3.4% in July, which marked the highest rate since February of this year. Inflation still remains anchored within the Central Bank’s tolerance margin of plus/minus 1.0 percentage points around its target of 4.0%. Core consumer prices added 0.26% in July over the previous month (June: +0.18% month-on-month), while annual core inflation ticked up from 1.8% in June to 1.9% in July.
At its 25 June monetary policy meeting, the Central Bank decided to cut the policy interest rate by 25 basis points from 4.75% to 4.50% to boost the domestic economy.
Author: Dirina Mançellari, Senior Economist