Guatemala: Inflation rises to highest level in more than two years
June 7, 2011
In May, consumer prices rose 0.49% over the previous month, which was below the 0.63% increase observed in April. The monthly rise reflected higher prices for food and non-alcoholic beverages, as well as for housing, water, electricity, gas and fuels according to the National Statistics Institute. Despite the subdued reading, annual headline inflation jumped from 5.8% in April to 6.4% in May, which represented the highest level since February 2009. The core inflation index, which excludes more volatile categories of the consumer price index, added 0.49% over the previous month, driving annual core inflation to 4.6% (April: 4.2% year-on-year). The Central Bank has an inflation target of 5.0% 1.0% for this year. For 2012, monetary authorities have set an inflation target of 4.5%.
Author: Ricardo Aceves, Senior Economist