Guatemala Inflation

Guatemala

Guatemala: Inflation inches down to lowest rate in 18 months

June 6, 2014

In May, consumer prices rose 0.22% over the previous month, which followed the 0.19% increase recorded in April. The print mainly reflected higher prices for food and healthcare.

Annual headline inflation inched down from 3.3% in April to 3.2% in May, which marked the lowest rate since November 2012. That said, 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 0.12% in May (April: +0.22% month-on-month), while annual core inflation inched down from 2.1% in April to 2.0% in May, which marked the lowest rate since January 2010.

At its 28 May monetary policy meeting, the Central Bank decided to keep the policy interest rate at 4.75%. The Bank justified its decision by pointing out that there has been gradual recovery in the developed economies and that the domestic economy has also performed well.

FocusEconomics Consensus Forecast panelists see inflation at 4.7% by the end of 2014, which is unchanged from last month’s estimate. In 2015, FocusEconomics Consensus Forecast participants expect inflation to inch down to 4.6%.


Author:, Senior Economist

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Guatemala Inflation Chart


Guatemala Inflation May 2014 1

Note: Annual and monthly variation of consumer price index in %.
Source: National Statistics Institute


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