Guatemala’s infaltion slows in August 

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By LatAm Reports Staff Writers

In Guatemala, the inflationary pace slowed in August and closed at 3.07%, being less than 3.78% reported in July and 3.62% in June, reported the National Institute of Statistics (INE).

he report of the Consumer Price Index (CPI) that is the instrument that serves to measure inflation, that of August or intermonthly was negative -0.06%; while the accumulated inflation at 1.77%, so they registered a slowdown.

According to the CPI, the divisions of food and transport expenditure recorded a negative variation, of -0.10% and -0.03%, which, in the structure, are the ones with the greatest weight; that is, any movement – down or upward – of these divisions, will be reflected in the indicator.

While the restaurant division recorded a positive incidence of 0.04%, followed by that of health and furniture of 0.01% for each.

And although the national average inflation was 3.07% at the national level, region VI (Quetzaltenango, Retalhuleu, San Marcos, Suchitepéquez, Sololá and Totonicapán) was the highest with 4.33% inflation, while region III (Chiquimula and Izabal) was the lowest with 1.44%.

Movements

The CPI deploys 10 products that had the highest positive impact – increases – and negative – lower. In the August measurement, according to the CPI, the five products that recorded the highest positive monthly incidence were: carrots (0.04%), chicken eggs (0.02%), fresh chicken meat (0.02%), black beans, dried (0.02%) and simple lunch (drink, meat and (0.01%).

On the contrary, the five products with the highest monthly negative incidence were fresh tomatoes (-0.06%), potatoes (-0.06%), gyisquil (-0.04%), ejotes, fresh or chill (-0.02%) and gasoline (-0.01%).

Cost of food

According to the INE, the cost of the Urban Food Basic Basket (CBAU) per capita was Q897.27 and the Basic Rural Food Basket (CBAR) of Q695.85.

The official report indicates that the cost of acquiring the Urban Expanded Basket (CAU) per capita is Q2 thousand 172.29 and the Rural Expanded Basket (CAR) of Q1 thousand 369.43, according to the methodology used this year to measure the cost of food in households.

Target indicator

The results of the Economic Expectations Survey (EEE) to the panel of private analysts, which is consulted by the Bank of Guatemala, in August, indicates that inflation by December 2024 would be 4.14% and by December 2025 at 4.15%. The official report indicates that, for a horizon of 12 and 24 months or August 2025 and August 2026, panelists predict an inflationary rate of 3.99% and 4.02 per cent, respectively.

On August 28, the members of the Monetary Board decided to keep the Monetary Policy Interest Lead Rate at 5%.

This article has been translated after first appearing in Prensa Libre