In December 2014, the consumer price index recorded a monthly decline of 0.11%, closing the year at 2.95%, down from the 4.39% inflation recorded in 2013.
From a statement issued by the Government of Guatemala:
The National Statistics Institute (INE) reported that inflation slowed in Guatemala last year and ended with a cumulative rate of 2.95%, well below the rate of 4.39% for 2013.
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".
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.
After two months of supposed 'deflation', year-over-year price variation become positive once again.
For July and August 2009, the inter-annual variation of the Consumer Prices Index (IPC), recorded lows of -0.3% and -0.73%. These negatives values implied the economy was entering a deflationary process (generalized reduction of prices). However, in September, year-on-year variation was positive once again (0.03%), and reversed a negative trend in place since the beginning of the year.
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.
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.
Prensalibre.com highlighted statements by Luis Arroyo, the director of the Department of the Consumer Price Index (CPI) of INE: "It is probable that we will enter a period of deflation because we still have the three months that were the highest last year remaining. Furthermore, we have noticed that the variations of this year seem to be in a free fall."
As of March, consumer prices showed a variation of -0.25%, according to data from the Institute of Statistics(INE).
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.
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. Luis Arroyo, director of the Department of Statistics at the National Statistical Institute (INE), stated that the whole world is going through a similar situation, a product of the existing recession; mainly in industrialized countries like the United States and Japan "
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."