Guatemala: Inflation stable at 16-month low in April
May 8, 2014
In April, consumer prices rose 0.20% over the previous month, which followed the 0.23% increase recorded in March. The print mainly reflected higher prices for transport and healthcare.
Annual headline inflation was stable at March's 3.3%, which had marked the lowest rate since November 2012. That said, inflation still remains anchored within the Central Bank's tolerance margin of plus/minus 1.0 percentage points around its target of 4.0%. Core consumer prices added 0.22% in April (March: +0.24% month-on-month), while annual core inflation inched up from 2.0% in March to 2.1% in April.
At its 30 April monetary policy meeting, the Central Bank decided to keep the policy interest rate at 4.75%. The Bank justified its decision by pointing out the gradual recovery in the developed economies as well as the good performance of the domestic economy.
FocusEconomics Consensus Forecast panelists see inflation at 4.7% by the end of 2014, which is unchanged from last month's estimate. In 2015, FocusEconomics Consensus Forecast participants expect inflation to inch down to 4.6%.
Author: Dirina Mançellari, Senior Economist