Guatemala: Inflation rises to two-year high
September 8, 2011
In August, consumer prices added 0.60% over the previous month, which was below the 0.95% increase tallied in July. According to the National Statistics Institute, the monthly rise was mainly the result of higher prices for food and non-alcoholic beverages. As a result of the monthly increase, annual headline inflation rose from 7.0% in July to 7.6% in August, which represented the highest inflation rate since January 2009. The core inflation index, which smoothes more volatile categories, rose 0.39% over the previous month, which pushed annual core inflation to 5.4% (July: 5.2% 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% 1.0%.
Author: Ricardo Aceves, Senior Economist