Peru: Inflation reaches 20-month high
March 1, 2014
Consumer prices for Metropolitan Lima increased 0.60% over the previous month in February, which was up from the 0.32% rise registered in January. The print came in above the 0.30% increase the market had expected. The increase was broad-based as all eight components of the index increased in February. The largest expansions were recorded in food and beverages and in house rentals, fuels and electricity. Annual headline inflation increased from January's 3.1% to 3.8% in February-the highest reading since June 2012. As a result, inflation climbed even further above the upper limit of the Central Bank's target of 2.0% plus/minus 1.0 percentage points. In its December quarterly inflation report, the Central Bank indicated that it expects inflation of around 2.0% for both 2014 and 2015. LatinFocus Consensus Forecast panelists expect inflation to end 2014 at 2.5%, which is unchanged from last month's projection. For 2015, the panel expects inflation of 2.5%.