Peru Inflation July 2017

Peru

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.

The Central Bank expects inflation to end 2017 between 2.0% and 2.5% and 2018 between 2.0% to 2.2%. Panelists participating in the LatinFocus Consensus Forecast expect inflation to end 2017 at 2.7%, which is down 0.1 percentage points from last month’s projection. For 2018, the panel also expects inflation of 2.7%.


Author:, Economist

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Peru Inflation July 2017

Note: Month-on-month and year-on-year variation of consumer price index in %.
Source: Peru National Statistical Institute (INEI)


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