Peru: Inflation inches up in April
May 2, 2014
Consumer prices for Metropolitan Lima increased 0.39% over the previous month in April, which was down from the 0.52% rise registered in March. The print came in above the 0.29% increase the market had expected. The increase was broad-based as all eight components of the index increased in April. The largest expansions were recorded in food and beverages as well as in house rentals, fuels and electricity.
Annual headline inflation inched up from 3.4% in March to 3.5% in April. As a result, inflation remains above the upper limit of the Central Bank's target of 2.0% plus/minus 1.0 percentage points.
In its April quarterly inflation report, the Central Bank indicated that it expects inflation of between 2.5% and 3.0% in 2014 and between 1.5% and 2.5% in 2015. LatinFocus Consensus Forecast panelists expect inflation to end 2014 at 2.7%, which is unchanged from last month's projection. For 2015, the panel expects inflation of 2.5%.
Author: Carl Kelly, Economist