Peru: Inflation accelerates in October
November 1, 2013
Consumer prices for Metropolitan Lima increased a meager 0.04% over the previous month in October, down from the 0.11% rise registered in September. Although the print exceeded market expectations of a flat reading, the result marked an eight-month low. The modest rise reflects an increase in most categories of the index, which more than offset the marked decline in prices for transport and communications.
Annual headline inflation edged up from 2.8% in September to 3.0% in October. As a result, inflation now sits at the upper limit of the Central Bank's target of 2.0% plus/minus 1.0 percentage point.
The Central Bank's September inflation report indicated that it expects inflation to end both this year and next within a range of 1.5% to 2.5%. LatinFocus Consensus Forecast panelists expect inflation to end 2013 at 3.0%, which is unchanged from last month's projection. For 2014, the panel expects inflation to ease to 2.5%, which is also unchanged from last month's estimate.