Posted On 07 Sep 2017
Monthly inflation in August 2017 did not show negative figures: 0.01%; the annual inflation stood at 0.28% and the accumulated inflation at 0.20%. In the same month of 2016, it was -0.16, according to the report published yesterday by the National Institute of Statistics and Censuses. What will happen in September? It is possible that the beginning of the school year in the highlands raises prices, as it has been the case in previous years, due to the increased demand for school supplies, clothing, shoes and other products. But analysts say that the impact may be lower because of the contraction of the national economy.
One explanation for this would be the removal of the safeguard tariffs and the VAT reduction.
The executive director of the National Institute of Statistics and Censuses (Inec) Jorge García Guerrero always talks about hypotheses when it comes to inflation. The agency does not analyze the causes, only reflects the behavior of prices.
But there are coincidences after natural or economic phenomena and falls or rises in 359 goods and services investigated.
The truth is that after dollarization, prices have been falling in a cascade, to the point that in August, the accumulated inflation is only 0.20%. (I)