Peru: Inflation falls to lowest point in 15 months in August
September 1, 2014
Consumer prices for Metropolitan Lima decreased 0.08% over the previous month in August, which contrasted the 0.43% rise registered in July. The print also contrasted the 0.20% increase the market had expected, and marked the first negative reading since November of last year. The decrease was driven mainly by a drop in prices for housing, gas and electricity. The transportation and communications category also tallied a decline.
Annual headline inflation fell from 3.3% in July to 2.7% in August, which marks the lowest rate since May of last year. As a result, inflation is now below the upper limit of the Central Bank’s target of 2.0%, plus/minus 1.0 percentage point.
Author: Carl Kelly, Economist