Guatemala: Inflation stabilizes in October
November 7, 2013
In October, consumer prices fell a meager 0.03% over the previous month, contrasting the 0.29% rise recorded in September. The drop mainly reflected lower prices for transport and alcoholic beverages, according to the statistical institute.
Annual headline inflation stabilized at September's 4.2% in October. As a result, inflation remains well anchored within the Central Bank's tolerance margin (plus/minus 1.0 percentage points) around its target of 4.0%. Core consumer prices added 0.17% in October (September: +0.09% month-on-month), while annual core inflation inched down from 2.9% in September to 2.8% in October, the lowest level since November 2010.
At its 30 October monetary policy meeting, the Central Bank decided to cut the policy interest rate by 25 basis points to 5.00%. The Bank justified its decision by citing downside risks to the global economic outlook as well as subdued inflationary pressures.
FocusEconomics Consensus Forecast panelists see inflation at 4.7% by the end of the year, which is unchanged from last month's estimate. Next year, FocusEconomics Consensus Forecast participants expect inflation to inch up to 4.8%, which is also unchanged over the previous month's forecast.