Guatemala: Inflation inches down in April
May 6, 2016
In April, consumer prices rose 0.17% over the previous month, which came in slightly below the 0.20% rise tallied in March. In April, prices for recreational goods and services decreased the most over the previous month, while prices for transportation observed the largest increase.
Inflation fell from 4.3% in March to 4.1% in April. Thus, inflation remains within the Central Bank’s tolerance margin of plus/minus 1.0 percentage points around its target of 4.0%.
At its 27 April monetary policy meeting, the Bank of Guatemala decided to keep its policy rate at 3.00%. In its brief press release, the Bank stated that it expects moderate global growth going forward, with risk tilted toward the downside. Regarding the domestic economy, the Central Bank pointed out that economic activity continued to grow according to its previous estimate. This is evidenced by the monthly indicator of economic activity and growth of private sector credit. The Bank added that it expects inflation to remain within its target range this year and in 2017.
Author: Robert Hill, Economist