Peru: Inflation recedes in March
April 1, 2014
Consumer prices for Metropolitan Lima increased 0.52% over the previous month in March, which was down slightly from the 0.60% rise registered in February. The print was broadly in line with the 0.53% increase the market had expected. The increase was broad-based as all eight components of the index increased in March. The largest expansions were recorded in education and culture as well as in house rentals, fuels and electricity.
Annual headline inflation decreased from 3.8% in February to 3.4% in March. However, inflation remains 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 2.7%, which is unchanged from last month's projection. For 2015, the panel expects inflation of 2.5%.
Author: Carl Kelly, Economist