Peru: Inflation continues to rise in June
July 6, 2018
Consumer prices in Metropolitan Lima increased 0.33% month-on-month in June, above May’s 0.02% subdued rise. June’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, as well as for food and beverages. On the other hand, lower prices were recorded for domestic propane gas.
Meanwhile, inflation rose. It increased to 1.4% in June, up from 0.9% in May, moving further away from March’s over seven-year low. In May core consumer prices, which exclude energy and food, increased 0.4% from the previous month, above May’s softer 0.2% increase. Finally, core inflation rose to a six-month high of 2.3% in June, above May’s seven-year low of 2.1%.
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%.
