Peru: Inflation drops to seven-month low
May 1, 2012
In April, consumer prices rose 0.53% over the previous month, which was below the 0.77% increase observed in March, but above market expectations that had consumer prices adding 0.35%. According to the statistical institute, higher prices for food and non-alcoholic beverages were the main drivers behind the monthly rise. Despite the monthly rise, annual headline inflation inched down from 4.2% in March to 4.1% in April, which marks the lowest level since September 2011. Despite moderation in April, inflation remains above the upper tolerance margin of the Central Bank's target of 2.0% +/- 1.0%. The Central Bank expects inflation to fall within a range of 2.0% and 3.0% by the end of 2012. For 2013, the Bank sees inflation falling within a range of 1.5% and 2.5%.
Author: Ricardo Aceves, Senior Economist