Peru: Inflation inches down in December
January 1, 2014
Consumer prices for Metropolitan Lima increased 0.17% over the previous month in December, contrasting the 0.22% decline registered in November. The print fell slightly short of the 0.20% increase the market had expected. The increase was broad based, with the largest increases registered in prices for transport and communications. The only category that registered a drop in prices was food and beverages.
Annual headline inflation inched down from November's 3.0% to 2.9% in December. As a result, inflation now sits just a notch below the upper limit of the Central Bank's target of 2.0% plus/minus 1.0 percentage point.
In its December quarterly inflation report, the Central Bank indicated that it expects inflation of around 2.0% for both 2014 and 2015. LatinFocus Consensus Forecast panelists expect inflation to end 2014 at 2.6%, which is up 0.1 percentage points from last month's projection. For 2015, the panel expects inflation to ease to 2.3%.