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.
Author: Dirina Mançellari, Senior Economist