Guatemala: Inflation rises to a seven-month high in August
September 6, 2014
In August, consumer prices rose 0.42% over the previous month, which was below the 0.57% increase recorded in July. The print mainly reflected higher prices for food and alcoholic beverages.
Annual headline inflation edged up from 3.4% in July to 3.7% in August, which marked the highest rate since January of this year. Inflation still remains anchored within the Central Bank’s tolerance margin of plus/minus 1.0 percentage points around its target of 4.0%. Core consumer prices added 0.11% in August over the previous month (July: +0.26% month-on-month), while annual core inflation ticked up from 1.9% in July to 2.0%.
At its 27 August monetary policy meeting, the Central Bank decided to keep the policy interest rate steady at 4.50% in an effort to boost the domestic economy.