Peru Inflation


Peru: Inflation jumps further above target in November

December 1, 2015

Consumer prices for Metropolitan Lima increased 0.35% in November over the previous month, which was above the 0.14% rise registered in October. This was also stronger than the 0.15% increase expected by the market. The result was driven almost entirely by higher prices for food and beverages. Prices for goods such as potatoes increased amid a disruption to agricultural production due to adverse weather conditions associated with El Niño.

Inflation increased from 3.7% in October to 4.2% in November. Consequently, inflation moved further above the upper limit of the Central Bank’s target of 2.0% plus/minus 1.0 percentage points. The weak Peruvian sol is contributing to inflationary pressures, and above-target inflation led the Central Bank to hike its main interest rate in September for the first time in more than four years. The Bank held its rate in October but the latest inflation result may prompt another hike at the meeting scheduled for 10 December.

In its September quarterly inflation report, the Central Bank indicated that it expects inflation to be between 3.5% and 4.0% in 2015 and between 2.5% and 3.0% in 2016. Panelists participating in the LatinFocus Consensus Forecast expect inflation to end 2015 at 3.8%, which is up 0.1 percentage points from last month’s projection. For 2016, the panel expects inflation of 3.2%, which is unchanged from last month’s estimate.

Author:, Economist

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Peru Inflation Chart

Peru Inflation November 2015

Note: Month-on-month and year-on-year variation of consumer price index in %.
Source: Peru National Statistical Institute (INEI)

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