Peru: Inflation quickens in May
June 1, 2013
In May, consumer prices for metropolitan Lima rose 0.19% over the previous month, which came in below the 0.25% increase observed in April and was in line with market expectations. The monthly rise reflects higher prices for food and non-alcoholic beverages and tobacco.
Annual headline inflation climbed from 2.3% in April - which had marked a two-year low - to 2.5% in May. Despite the increase, inflation sits within the Central Bank's target of 2.0% with a tolerance margin of plus/minus 1.0 percentage points.
In its March inflation report, the Central Bank expects consumer prices to end both this year and next within a range of between 1.5% and 2.5%. LatinFocus Consensus Forecast panellists are slightly less optimistic and expect inflation to end 2013 at 2.6%, which is unchanged from last month's projection. For 2014, the panel expects inflation to fall to 2.5%.
Author: Ricardo Aceves, Senior Economist