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.