Peru: Inflation inches up but remains subdued in April
May 4, 2018
Consumer prices in Metropolitan Lima decreased 0.14% month-on-month in April, contrasting March’s 0.49% rise. April’s increase was mainly the result of higher prices for food and beverages and for transport and communication. On the other hand, lower prices were recorded for education and culture and for health.
Meanwhile, inflation inched up. It rose to 0.5% in April from 0.4% in March—which had marked the lowest print since December 2009. In April core consumer prices, which exclude energy and food, increased 0.1% from the previous month, well below March’s subdued 0.8% jump. Finally, core inflation declined from March’s 2.2% to 2.1% in April, the lowest reading in over seven years.
Peru Inflation Forecast
The Central Bank expects inflation to end 2018 at 2.0%. Panelists participating in the LatinFocus Consensus Forecast expect inflation to end 2018 at 2.8%, which is up 0.1 percentage points from last month’s projection. For 2019, the panel expects inflation of 2.7%.