Peru: Inflation moderates in August
September 1, 2011
In August, consumer prices added 0.27% over the previous month, which was below the 0.79% increase observed in July and fell short of market expectations of a 0.29% rise. The monthly reading reflected higher prices for transport on the back of higher energy prices, which were partially offset by lower prices for food. As a result of the subdued reading in August, annual inflation inched down to 3.3% from 3.4% in July. Despite the moderation, the reading marked the second consecutive month where inflation lingered above the upper tolerance margin of the Central Bank's target of 2.0% 1.0%. The Central Bank expects inflation to settle within a range of between 3.0% and 3.5% this year. For 2012, the Bank anticipates inflation will end the year within the 1.5% to 2.5% range.
Author: Ricardo Aceves, Senior Economist