Guatemala: Inflation inches down to lowest rate in 19 months
July 9, 2014
In June, consumer prices rose 0.53% over the previous month, which followed the 0.22% increase recorded in May. The print mainly reflected higher prices for food and recreation.
Annual headline inflation inched down from 3.2% in May to 3.1% in June, 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 0.18% in June over the previous month (May: +0.12% month-on-month), while annual core inflation ticked down from 2.0% in May to 1.8% in June, which marked the lowest rate since January 2010.
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% in order to boost the domestic economy.
Author: Dirina Mançellari, Senior Economist