Macchu Picchu Peru

Peru Inflation October 2021

Peru: Inflation drives higher in October

Consumer prices rose 0.58% over the previous month in October, a larger increase than the 0.40% rise logged in September. Looking at the details of the release, rising housing and utility costs, and steeper transport prices drove the overall increase.

Inflation came in at 5.8% in October, up from September’s 5.2%. October’s figure represented the highest inflation rate since January 2009. Annual average inflation rose to 3.3% in October (September: 3.0%). Lastly, core inflation came in at 2.8% in October, rising from 2.6% in the previous month.

Regarding the impact of rising inflation on monetary policy, Diego W. Pereira, economist at JPMorgan, commented:

“In all, we hold to our base case for 50bp policy rate hike next week. But the inflation surprise should drive the Board to add another 50bp in December, so for the policy rate to close the year at 2.5%. If we are on the mark, the policy rate would close the year 25bp above the pre-Covid level. For 2022, we expect the policy rate to reach 4%, driving the ex-post and ex-ante real rates close to the 2011-19 average level.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest