Peru Inflation June 2016

Peru

Peru: Downward trend in inflation remains intact in June

July 1, 2016

Consumer prices for Metropolitan Lima rose slightly in June, increasing 0.14% over the previous month, which was below the 0.21% rise registered in May and down from the 0.19% increase expected by market analysts. The sub-category for furniture and household appliances recorded the strongest price increase followed by clothing and footwear. Conversely, prices for food and beverages fell in June.

Inflation declined from 3.5% in May to 3.3% in June. Although June’s print marked the lowest rate since April 2015, inflation remained above the upper limit of the Central Bank’s target of 2.0% plus/minus 1.0 percentage points for the 16th consecutive month.

The core consumer price index, which excludes volatile items such as fresh food and fuels, rose 0.23% month-on-month in June (May: +0.41% month-on-month). Finally, core inflation stabilized at May’s 4.1% in June.

The Central Bank indicated that it expects inflation to be between 3.0% and 3.5% in 2016 and between 2.0% and 2.2% in 2017. Panelists participating in the LatinFocus Consensus Forecast expect inflation to end 2016 at 3.2%, which is unchanged from last month’s projection. For 2017, the panel expects inflation of 2.8%.


Author: Marlène Rump, Senior Data Analyst

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Peru Inflation June 2016

Note: Month-on-month and year-on-year variation of consumer price index in %.
Source: Peru National Statistical Institute (INEI)


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