Prices Cooling For Remainder Of 2010

BMI View: Although price pressures in Guatemala started 2010 on a strong footing, we believe they are now set for a cooling-off period, thanks to a drop in both imported and domestic inflation. While last year's severe drought could keep upside pressure on hydroelectric and food prices high over the coming months, subdued gasoline prices and weaker domestic demand as we move into H210 will keep monetary policy accommodative until the latter stages of this year.

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