Guatemala: Inflation remains steady in May
July 8, 2021
Consumer prices increased 0.19% from the previous month in June, picking up from the 0.16% increase logged in May. The print reflected a notable uptick in transportation costs, while food prices also rose steeply.
Inflation eased considerably to 3.9% in June from 5.2% in May, with June’s print marking the lowest reading since June last year. Meanwhile, the trend pointed up, with annual average inflation coming in at 4.9% in June (May: 4.8%).
Analysts at the EIU added:
“We expect inflation to end the year at 4.5% and to remain within the target range throughout the 2021-25 forecast period, averaging 4.2%. Risks to our forecast include adverse weather conditions, including the delayed impact of hurricanes Eta and Iota on the 2021 harvest; they have hit agricultural production and could exert significant inflationary pressures on food prices.”