Peru: Inflation at highest level in more than two years
August 1, 2011
In July, consumer prices jumped 0.79% over the previous month, which was well above the 0.10% rise in June and overshot market analysts' expectations that had seen consumer prices rising 0.31%. The monthly jump, which marked the fastest pace in more than three years, was mainly the result of higher prices for food and beverages as well as elevated prices for energy, especially for motor fuels. As a result of the monthly jump, annual inflation rose from 2.9% in June to 3.4% in July, which marked the highest level since May 2009. As a result, inflation remains above the Central Bank's target of 2.0% with a 1.0% tolerance margin. The Central Bank expects inflation to rise to a range of between 3.0% and 3.5% this year. For 2012, the Bank anticipates inflation will end the year within the 1.5% to 2.5% range.
Author: Ricardo Aceves, Senior Economist