Guatemala: Inflation increases in November
December 9, 2013
In November, consumer prices rose 0.45% over the previous month, contrasting the 0.03% drop recorded in October. The increase mainly reflected higher prices for food as well as for alcoholic beverages and restaurants, according to the statistical institute.
Annual headline inflation rose from 4.2% in October to 4.6% in November, reaching the highest level in four months. As a result, inflation remains well anchored within the Central Bank's tolerance margin (plus/minus 1.0 percentage points) around its target of 4.0%. Core consumer prices added 0.05% in November (October: +0.17% month-on-month), while annual core inflation edged down from 2.8% in October to 2.6% in November, marking the lowest level since September 2010.
At its 27 November monetary policy meeting, the Central Bank decided to maintain the policy interest rate at 5.00%, following the 25 basis point-cut delivered by the Bank at the previous month's meeting. The Bank justified its decision by citing the gradual global economic recovery as well as subdued inflationary pressures.
FocusEconomics Consensus Forecast panelists see inflation at 4.6% by the end of the year, which is down 0.1 percentage points from last month's estimate. Next year, FocusEconomics Consensus Forecast participants expect inflation to inch up to 4.8%, which is unchanged over the previous month's forecast.