Peru: Inflation eases in June
July 1, 2011
In June, consumer prices added 0.10% over the previous month, which contrasted the 0.02% drop observed in May, but was below both the 0.25% rise observed in June the previous year and market expectations of a 0.15% rise. The monthly rise reflected higher prices for housing, electricity and fuel as well as for transports and communications. Annual consumer prices edged down from 3.1% in May to 2.9% June, after inflation rose to a two-year high in April. As a result of the moderation, the annual inflation rate returned to the Central Bank's target of 2.0% with a 1.0% tolerance margin. The Central Bank expects inflation to rise to a range of between 3.0% and 3.5% this year. For 2012, the Bank anticipates inflation will end the year within the 1.5% to 2.5% range.
Author: Ricardo Aceves, Senior Economist