Guatemala: Inflation falls in 2014
January 8, 2015
In December, consumer prices fell 0.11% over the previous month, which contrasted the 0.19% increase recorded in November. The result marked the first fall in consumer prices in over three years. The decline in consumer prices was largely driven by a fall in the price of transportation.
Annual headline inflation ended 2014 at 3.0%, which was down from 4.4% in 2013. Inflation now rests at 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%.