Peru: Inflation declines in January
December 2, 2011
In January, consumer prices dropped 0.10% over the previous month, which contrasted the 0.27% rise observed in December but was virtually in line with market expectations of a 0.13% decline. The monthly fall reflected lower prices for food and beverages as well as for transport and communications. As a result of the monthly drop, annual headline inflation fell from 4.7% in December to 4.2% in January, the lowest level since October 2011. Consequently, inflation moved closer to the upper tolerance margin of the Central Bank's target of 2.0% 1.0%. In its December inflation report, the Central Bank expects inflation to fall within a range of 1.5% and 2.5% by the end of 2012. For 2013, the Bank sees inflation remaining between the same 1.5% and 2.5% range.
Author: Ricardo Aceves, Senior Economist