Peru Inflation

Peru

Peru: Inflation moderates in October, but remains above target

November 2, 2015

Consumer prices for Metropolitan Lima increased 0.14% over the previous month in October, which was above the 0.03% rise registered in September. This was slightly stronger than the 0.10% increase expected by the market. The result reflects that higher prices in several categories, including food and beverages, as well as clothing and footwear, were partially offset by lower prices for transport and communications.

Inflation moderated from 3.9% in September to 3.7% in October. However, inflation is still well above the upper limit of the Central Bank’s target of 2.0% plus/minus 1.0 percentage point. 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 over four years.

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

Sample Report

Looking for forecasts related to Inflation in Peru? Download a sample report now.

Download

Peru Inflation Chart


Peru Inflation October 2015

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


Peru Economic News

More news

Search form