Guatemala Records 0.42 Point Deflation

The Consumer Price Index registered a decrease of 0.42% in the month of January

Tuesday, February 10, 2009 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."

More on this topic

Guatemala: Prices Keep Falling

November 2009

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

Guatemalan CPI Falls for Third Consecutive Month

March 2009

The Consumer Price Index (CPI) positioned itself at -0.60%, leaving behind the -0.42% recorded in January

Jessica Gramajo wrote in the Siglo 21 website: "While some economic analysts believe that this behavior could lead to deflation, others indicate that this situation is still far from being the case.

Guatemala Closes a Deflationary 2009

January 2010

In 2009, and for the first time in 27 years, the country recorded a negative inflation rate (-0.28%).

The main causes were the international economic crisis, a contraction in local economic activity and a reduction in remittances.

"Antonieta de Bonilla, Banguat President, considers the situation was the result of a realignment of prices, after they were pushed higher by the elevated price of commodities in 2008".

Deflation, for the first time in 25 years

August 2009

In Guatemala, the consumer price index for July registered an inter-annual variation of -0.3%, and this trend could continue in August.

The last time inter-annual inflation was negative was in July 1984, 25 years ago.

"However, the Central Bank of Guatemala affirms that to declare a 'deflationary process' (a generalized drop in prices), there has to be at least two months of consecutive negative inter-annual inflation", reported journalist Lorena Alvarez in an article in El Periódico.

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