Peru: Inflation at nine-month high in July
August 2, 2018
Consumer prices in Metropolitan Lima increased 0.38% month-on-month in July, above June’s 0.33% rise. July’s increase was mainly the result of higher prices for transport and communication, as a result of the increase in the selective consumption tax approved in May; higher prices for food and beverages, and higher prices for residential electricity following the new tariff plan approved on 4 July.
Meanwhile, inflation increased to 1.6% in July (June: 1.4%), moving further away from March’s over seven-year low. In July, core consumer prices, which exclude energy and food prices, increased 0.2% from the previous month, below June’s 0.4% increase. Finally, core inflation rose to an eight-month high of 2.4% in July, marginally above June’s 2.3%.
Peru Inflation Forecast
The Central Bank expects inflation to end 2018 at 2.0%. Panelists participating in the LatinFocus Consensus Forecast expect inflation to end 2018 at 2.8%, which is up 0.1 percentage points from last month’s projection. For 2019, the panel expects inflation of 2.7%.