Guatemala: Inflation stable in March
April 7, 2016
In March , consumer prices rose 0.20% over the previous month, which came in slightly below the 0.21% rise tallied in February. In March, prices for food decreased the most over the previous month, while prices for transportation observed the largest increase.
Inflation was stable in March at February’s 4.3%. Inflation remains within the Central Bank’s tolerance margin of plus/minus 1.0 percentage points around its target of 4.0%.
At its 30 March monetary policy meeting, the Bank of Guatemala decided to keep its policy rate at 3.00%. In its brief press release, the Bank stated that it expects moderate global growth going forward, with balanced risks toward inflation. Regarding the domestic economy, the Central Bank pointed out that economic activity continued to grow, with remittances, the monthly indicator of economic activity and private sector credit all performing solidly. As for price developments, the Bank said that although oil prices had increased somewhat in recent months, prices for commodities remain at historic lows, thus containing inflationary pressures. The Bank added that it expects inflation to remain within its target range this year and in 2017.
Author: Robert Hill, Economist