Guatemala: Inflation slows in November
December 7, 2012
In November, consumer prices declined a mild 0.01% over the previous month, which contrasted the 0.03% rise seen in October. According to the National Statistics Institute, the monthly print mainly reflected how a sharp drop in prices for transport and alcoholic beverages was offset by higher prices in most of the remaining categories.
As a result of the subdued monthly reading, annual headline inflation slowed from 3.4% in October to 3.1% in November, which represents the lowest rate in three months. Meanwhile, the core inflation index added 0.23% over the previous month (October: +0.25% month-on-month), driving the annual core inflation to 3.4% (October: +3.5%).
At its 31 October monetary policy meeting, the Central Bank decided to maintain the policy interest rate unchanged at 5.00%. The Bank justified its decision citing solid economic growth at home as well as its willingness to contain inflation in the mid-term.
The Central Bank set an inflation target range of 4.5% plus/minus 1.0% for this year. For 2013, monetary officials have set an inflation target range of 4.0% plus/minus 1.0%.