Peru: Inflation eases in December
January 1, 2013
In December, consumer prices for metropolitan Lima jumped 0.26% over the previous month, which contrasted the 0.14% drop recorded in November, but undershot market expectations, which had consumer prices rising 0.32%. The monthly increase reflected higher costs for transport and communications as well as for food and non-alcoholic beverages.
Despite the monthly jump, annual headline inflation inched down from 2.7% in November to 2.6% in December, below the Central Bank's 2.8% estimate by the end of 2012 and within its target of 2.0% plus/minus 1.0 percentage points. The annual reading also came in well below the 4.7% increase registered in 2011.
In its December inflation report, the Central Bank expects inflation to fall within a range of between 1.5% and 2.5% in 2013. For 2014, the Bank sees inflation remaining in the same range.
Author: Ricardo Aceves, Senior Economist