Peru: Inflation eases in May
June 3, 2016
Consumer prices for Metropolitan Lima rose slightly in May, increasing 0.21% over the previous month, which was above the 0.01% rise registered in April and a notch above the 0.19% increase expected by market analysts. The sub-category for alcoholic beverages and tobacco recorded the strongest price increase due to a hike of an excise tax on cigarettes, effective from 5 May, which made tobacco products about 20% more expensive over the previous month. All other sub-categories tallied modest month-on-month increases.
Inflation eased from 3.9% in April to 3.5% in May and remained above the upper limit of the Central Bank’s target of 2.0% plus/minus 1.0 percentage points for the fifteenth consecutive month. However, May’s reading marked the lowest result in a year.
The core consumer price index, which excludes volatile items such as fresh food and fuels, rose 0.41% month-on-month in May (April: +0.19% month-on-month). Finally, core inflation inched up from April’s 4.0% to 4.1% in May.