Peru: Inflation reaches fresh multi-year low in December
January 12, 2018
Consumer prices in Metropolitan Lima increased in December after three consecutive monthly falls and rose 0.16% over the previous month, contrasting November’s 0.20% decline. December’s increase was mainly the result of lower prices for transport and communications, rental housing, fuels and electricity and clothing and footwear. On the other hand, lower prices were recorded for food and non-alcoholic beverages. The increase in the prices for housing, fuel and electricity was again due to an increase in tariffs for residential electricity.
Inflation, however, continued to moderate. It dropped to 1.4% in December from 1.5% in November, the lowest reading in over seven years. In December core consumer prices, which exclude energy and food, remained flat from the previous month, down from November’s 0.1% increase. Finally, core inflation inched down from 2.4% in November to 2.3% in December.
Peru Inflation Forecast
The Central Bank expects inflation to end 2018 at 2.0%. Panelists participating in the LatinFocus Consensus Forecast expect inflation to end 2018 at 2.8%, which is up 0.1 percentage points from last month’s projection. For 2019, the panel expects inflation of 2.7%.