Peru: Inflation edges up in July
August 1, 2017
Consumer prices in Metropolitan Lima swung to a 0.2% rise over the previous month in July from a 0.2% decline in June. The increase came after three consecutive months of falling prices and was caused by a rise in food and beverages prices, which largely stemmed from an uptick in fruit prices brought about by lower seasonal production and the effects of the coastal El Niño. Higher prices for leisure, fun and cultural services, and housing, fuel and electricity also contributed to the reversal.
Mirroring the upturn in consumer prices, inflation rose marginally to 2.9% in July after falling to an almost one-year low of 2.7% in June.
Moreover, core consumer prices, which exclude energy and food, increased 0.2% in July compared to the previous month (June: +0.2% month-on-month). Nonetheless, contrary to this upward trend, core inflation registered a drop to 2.4% in July from 3.0% in June.
Author: Nihad Ahmed, Economist