Guatemala: Inflation remains steady in May
Consumer prices increased 0.33% from the previous month in July, picking up from the 0.19% increase logged in June. The print, which marked the steepest monthly increase since March, reflected a notable uptick in transportation costs amid pricier oil, and a jump in food prices.
Inflation, meanwhile, inched down to 3.8% in July from 3.9% in June. July’s result marked the lowest reading in one year. Lastly, the trend pointed up as annual average inflation reached 5.0% in July from 4.9% in June.
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 a continued rise in oil prices and 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.”