Guatemala: 4 Consecutive Months of Deflation

As of March, consumer prices showed a variation of -0.25%, according to data from the Institute of Statistics(INE).

Wednesday, April 8, 2009

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 "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."

More on this topic

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".

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

Guatemala: .13% Inflation Rate in May

June 2009

According to data from the National Institute of Statistics, the accumulated inflation rate (from January to May) was -1.05 and prices increased .13% in May.

For seven consecutive months, this indicator has decreased. One of its lowest levels in recent years was reported in May.

Guatemala Records 0.42 Point Deflation

February 2009

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