Peru: Inflation reaches fresh multi-year low in February
March 12, 2018
Consumer prices in Metropolitan Lima increased 0.25% in February on a monthly basis, above January’s 0.13% rise. February’s increase was mainly the result of higher prices for rental housing, fuels and electricity and education and culture. On the other hand, lower prices were recorded for fruit. The increase in the prices for housing, fuel and electricity was again due to an increase in tariffs for residential electricity.
Meanwhile, inflation continued to moderate. It dropped to 1.2% in February from 1.3% in January, the lowest since May 2010. In February core consumer prices, which exclude energy and food, increased 0.1% from the previous month, down from January’s 0.2% rise. Finally, core inflation inched down to 2.2% from January’s 2.3%.
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%.