Guatemala Inflation January 2016

Guatemala

Guatemala: Inflation soars in January

February 11, 2016

In January, consumer prices rose 0.91% over the previous month, which exceeded the 0.43% rise tallied in December. The increase mainly reflects that a sharp rise in food prices more than offset lower transport prices.

Inflation soared from 3.1% in December to 4.4% in January, which marked the highest reading in over two years. The result kept inflation within the Central Bank’s tolerance margin of plus/minus 1.0 percentage points around its target of 4.0%.

At its 25 November monetary policy meeting, the Bank of Guatemala decided to keep its policy rate at 3.00%. The Bank had lowered the rate at its previous meeting in order to combat falling inflation.

The Central Bank sees inflation ending this year at 3.17%, while it expects inflation to close 2017 at 3.65%. FocusEconomics Consensus Forecast panelists foresee inflation at 3.3% at the end of 2016, which is down 0.1 percentage points from last month’s estimate. The panel expects inflation of 3.4% at the end of 2017.


Author: Teresa Kersting, Economist

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Guatemala Inflation Chart


Guatemala Inflation January 2016

Note: Annual and monthly variation of consumer price index in %.
Source: National Statistical Institute


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