Guatemala: Inflation inches up in August
September 7, 2016
In August, consumer prices rose 0.18% over the previous month, which came in below the 0.69% rise in July. Prices for food and healthcare increased the most over the previous month, while prices for housing and transport dropped the most.
August’s inflation came in at 4.7%, which was just above July’s 4.6% reading and was the highest result since July 2013. Inflation is inching closer to the Central Bank’s upper tolerance limit of plus/minus 1.0 percentage points around its target of 4.0%.
At its 31 August 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 sees the global recovery continuing at a slow and uneven pace. Regarding the domestic economy, the Central Bank considers that recent high frequency data suggests the economy is growing in line with its previous estimates. The Bank added that it expects inflation to remain within its target range this year and in 2017.
Author: Christopher Mc Innes, Economist