Guatemala: Inflation picks up in May

Consumer prices in Guatemala increased 0.47% in May over the prior month, accelerating from April’s fractional price increase of 0.04%. May’s reading came in above the average reading of 0.30% recorded in the month of May over the past seven years. Significantly higher prices for transportation and food drove the result, and prices for all but two categories increased. Prices for communications remained unchanged over the prior month.

Inflation, meanwhile, picked up pace slightly from 3.9% in April to 4.1% in May. As a result, inflation came in just above the midpoint of Banguat’s target range of 3.0%–5.0%.

Guatemala Inflation Forecast

Banguat expects inflation to end 2018 at 4.3% and 2019 at 4.5%. FocusEconomics panelists see inflation ending this year at 3.8%, which is down 0.2 percentage points from last month’s forecast. For 2019, our panelists expect inflation to end the year at 4.1%.