The values recorded in the past four months indicate that the economy is showing signs of deflation (-0.38% in December, -0.42% in January, -0.60% in February and -0.25% in March), explained Luis Arroyo, director of the INE.
Journalists L. Alvarez and V. Gudiel reported in an article published in Elperiodico.com.gt: "The last time that Guatemala suffered deflation was in 1982 (-2.07%) when the economy went into a severe recession following the debt crisis that caused the Quetzal to lose its parity against the dollar. Many companies went bankrupt due to the lack of currency and credit for the purchase of raw materials, unemployment soared, exports and tourism fell, and thousands of households were plunged into poverty when their incomes were reduced."
Inflation was -0.19% in October, while the year-on-year figure was -0.65%.
This drop has been mostly driven by lower prices in corn, oranges, tomatoes, avocado and fuels.
"From the 26 products included in the Basic Food Basket, ... 14 recorded price drops, among them cheese, chicken meat, tomatoes, coffee, banana and black beans; whereas 9 recorded increases, including bread, pasteurized milk and maize pancakes", reported Elperiodico.com.gt.
The Consumer Price Index registered a decrease of 0.42% in the month of January
Elperiodico.com.gt in its website publishes: "Thus, Luis Arroyo, Director of the IPC of the National Institute of Statistics (INE), has affirmed that this is the first time in 25 years that there has been a fall in prices during January."
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