Guatemala Inflation Hits 4.69% in September
Economy: Guatemala
Key Facts
—Who. Guatemala’s National Statistics Institute (INE), which publishes the figures, and the Bank of Guatemala, whose Monetary Board sets the 4% inflation target.
—What. Annual inflation rose to 4.69% in September 2026, from 3.37% in August and 2.70% in July.
—Why. Prices rose 1.18% in September alone, the biggest rise for a September since 2012. Food, transport and gasoline drove the rise.
—Target. The central bank aims for 4%, give or take 1 percentage point. The reading is inside the 3% to 5% band but above its midpoint.
—Relief. Congress removed VAT and the fuel tax (IDP) on gasoline and diesel from 1 October to 31 December 2026.
—Rate. The Monetary Board held its policy rate at 3.50% on 23 September 2026.
—As of. 8 October 2026, 00:05 GMT.
Guatemala’s annual inflation rose to 4.69% in September 2026, up from 3.37% in August, according to INE figures reported on 7 October. It is the highest reading since October 2023, according to Prensa Libre, though still inside the central bank’s tolerance band.
What We Know
Prices in September were 4.69% higher than in September 2025, INE data reported by Prensa Libre and La Hora show. They rose 1.18% in September alone, the biggest monthly rise for a September since 2012.
Accumulated inflation from January to September reached 4.17%. Annual inflation was 2.70% in July and 3.37% in August, so September marks a jump of about 1.3 percentage points.
La Hora reports that food and non-alcoholic drinks, transport and fuel drove the rise. Food and non-alcoholic drinks added about 0.75 percentage points and transport about 0.30, with gasoline alone adding about 0.17.
What the Central Bank Is Watching
Guatemala’s Monetary Board targets inflation of 4%, give or take 1 percentage point. At 4.69%, the reading sits inside that 3% to 5% band but above its midpoint.
The board kept its policy rate at 3.50% on 23 September 2026. It warned of upside risks from high fuel prices and from El Niño, a Pacific warming pattern that can disrupt weather and crops.
The board projected year-end inflation near 4%. Prensa Libre reports that this forecast did not include the temporary fuel tax exemption.
Fuel Tax Relief
Congress approved Decree 22-2026 in September 2026, removing value-added tax (VAT) and the fuel tax (IDP) on premium and regular gasoline and diesel. Press reports of the decree say the exemption runs from 1 October to 31 December 2026.
President Bernardo Arévalo signed the exemption, and the decree was published on 30 September. It followed fuel price increases and, according to press reports, protests by transport operators in September.
Congress had also approved Decree 21-2026, which would have capped diesel and regular gasoline at Q39 per gallon (about US$5.10) and premium at Q41 (about US$5.37). President Arévalo vetoed it, according to Prensa Libre.
The estimated cut from the exemption is up to Q9.41 per gallon (about US$1.23) on premium gasoline. Regular gasoline gets up to Q9.10 (about US$1.19) and diesel up to Q6.34 (about US$0.83).
The fiscal cost is estimated at Q3.32 billion (about US$434 million), at Q7.64 per US dollar (EODHD, 7 October 2026). The September index was measured before the relief began, so October data will be the first test of its effect.
We covered the rules in Guatemala Issues Fuel Tax Exemption Rules on 5 October. The relief covers premium and regular gasoline and diesel.
What Is Not Known
It is not yet clear how much of the tax cut reaches pump prices, or how quickly. The October inflation figure will be the first to show any effect.
Oil prices remain a risk because Guatemala imports its petroleum products. Prensa Libre links recent pressure to tensions affecting Middle East oil markets.
What It Means for US Readers and Investors
Many Guatemalan households rely on money sent home from the United States, and higher prices reduce what each dollar buys there. The US dollar was worth about Q7.64 on 7 October 2026 (EODHD).
Investors in Guatemalan assets will watch whether the Monetary Board changes its 3.50% rate if prices keep rising. US travelers and expats in Guatemala should expect higher food and fuel prices until the tax relief shows up at the pump.
More: Guatemala news in English, every day from The Rio Times.
Frequently Asked Questions
What is Guatemala’s inflation rate?
Annual inflation was 4.69% in September 2026, up from 3.37% in August. Prices rose 1.18% in the month, and accumulated inflation from January to September was 4.17%.
Why did inflation rise in September?
Food, transport and fuel drove the increase, according to La Hora. Food added about 0.75 percentage points, transport about 0.30 and gasoline about 0.17.
What is the central bank’s target?
The Monetary Board targets 4%, give or take 1 percentage point, so a 3% to 5% band. The 4.69% reading is inside the band but above the 4% midpoint.
Why does this matter to US readers?
Many Guatemalan families depend on money sent from the United States, and higher prices cut its buying power. Investors also watch whether the central bank changes its 3.50% policy rate.
Sources
Instituto Nacional de Estadística (INE) · Banco de Guatemala · Prensa Libre · La Hora · Congreso de la República
Connected Coverage
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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief