Average inflation in Guatemala

It is the average annual inflation rate for Guatemala: the average change in consumer prices over the year rather than the closing figure. It reflects the average rise in the household basket of goods and services across the whole year.

It is obtained by comparing the annual average consumer price index level with that of the prior year, based on regular price collection across a sample weighted by household spending. Comparable cross-country series come from the IMF's annual estimates.

Inflation is the reference for the Banco de Guatemala's monetary policy, which runs an inflation-targeting framework and adjusts its leading rate accordingly. A higher-than-expected reading tends to favour higher rates and pressures the quetzal.

It is a low-frequency figure subject to revision. As an annual average it smooths intra-year moves and can delay the signal of recent turning points; food and fuel prices add volatility, so the core rate is also monitored.