Peru: Inflation jumps further above target in December
January 4, 2016
Consumer prices for Metropolitan Lima increased 0.45% in December over the previous month, which was above the 0.34% rise registered in November. This was also stronger than the 0.26% increase expected by market analysts.
Inflation increased from 4.2% in November to end the year at 4.4% in December (2014: 3.2%). Consequently, inflation moved further above the upper limit of the Central Bank’s target of 2.0% plus/minus 1.0 percentage points. The annual rise was driven largely by higher prices for rental housing, fuel and electricity, as well as food and beverages. The weak Peruvian sol is also contributing to inflationary pressures.
Author: Carl Kelly, Economist