Guatemala Inflation (Core, ann. var. %, eop)

Inflation accelerates in February

Inflation comes in at highest level since October 2022 in January

Inflation rose to 9.7% in January, following December’s 9.2%. January’s result was the highest inflation rate since October 2022. The pick-up was primarily due to stronger price increases for food and alcoholic beverages. Meanwhile, housing and utilities prices grew at a softer rate.

Accordingly, the trend pointed up, with annual average inflation coming in at 7.5% in January (December: 6.9%).

Finally, consumer prices increased 0.38% from the previous month in January, accelerating from December’s 0.23% increase. January’s result was the highest reading since October 2022.

Inflation rose to 9.9% in February, following January’s 9.7%. The pick-up was primarily due to stronger price growth for food and alcoholic beverages, as well as for housing and utilities. In contrast, annual transport inflation nearly halved from the previous month.

Accordingly, the trend pointed up, with annual average inflation coming in at 8.0% in January (December: 7.5%).

Finally, consumer prices increased 0.64% from the previous month in February (January: +0.38%).

Analysts at the EIU commented on the outlook:

“We expect global food and fuel prices to moderate further this year, although they will remain elevated by historical standards. Local monetary tightening and a further easing of global supply bottlenecks will also support disinflation.”