INE Presents Data on Monthly Inflation and Inflation Rate

The National Institute of Statistics presented the results of the Consumer Price Index and the Basic Food Basket for July 2023.

by Victor Cojulún
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Guatemala City, -AGN- The National Institute of Statistics -INE- presented the Consumer Price Index -CPI and the Basic Food Basket -BFB- results for July 2023. Each of these indexes is calculated through a different methodology.

The CPI is an economic indicator that measures price variations of a sample basket of household consumption expenses within a specific period. Inflation refers to the generalized and sustained increase in prices of this basket, which comprises 441 goods and services. The CPI is calculated using the modified Laspeyres formula, utilizing the weights or relative importance of these goods and services.

The Basic Food Basket consists of a set of foods that constitute a minimum necessary to meet a family’s energy and protein needs. This set adjusts, as much as possible, to cultural patterns, purchasing power, and local availability and prices of foods.

The BFB encompasses 34 products and quantifies suggested grams for a household of 4.77 members, covering the energy requirement of 2,262 daily calories. In its formulation, the BFB follows the spending methodology observed in actual consumption patterns. In other words, it is not a normative basket, as it would be for dietary purposes.

Inflation

Monthly inflation for July 2023 was 0.7%, indicating increased general family basket -GFB- prices. The cumulative value reveals that these prices have risen 2.22% this year.

The year-on-year inflation, also known as the inflation rate, was 4.53%, representing a deceleration of 0.4% compared to June and indicating that prices have increased to a lesser extent compared to other periods. Endogenous and exogenous factors impact the prices of the goods and services composing the GFB. Additionally, monetary, exchange rate, and credit policy measures influence these dynamics.

Year-on-Year Variation

The year-on-year variation of the expenditure division on food and non-alcoholic beverages for July is 6.53% compared to June 2023, showing a deceleration of 1.51%. Consequently, prices have increased to a lesser extent compared to other months in the year.

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