Guatemala: Inflation picks up in June
July 6, 2016
In June, consumer prices rose 0.44% over the previous month, which came in below the 0.46% rise tallied in May. In June, prices for housing and transport increased the most over the previous month, while prices for education were unchanged.
June’s Inflation was in line with May’s 4.4% reading, which corresponded to an over-two-year high. Inflation is comfortably within the Central Bank’s tolerance margin of plus/minus 1.0 percentage points around its target of 4.0%.
At its 29 June 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, although at a slow pace and was occurring at an uneven rate across countries. Regarding the domestic economy, the Central Bank pointed out that economic activity had continued to grow according to its previous estimate. This is evidenced by the monthly indicator of economic activity and growth of private sector credit. The Bank added that it expects inflation to remain within its target range this year and in 2017.
Author: Robert Hill, Economist