Peru: Inflation remains steady in February
March 1, 2011
In February, consumer prices rose 0.38% over the previous month, which virtually mirrored the 0.39% increase observed in January, and matched private sector analyst expectations. The monthly price spike was mainly the result of higher prices for food and non-alcoholic beverages as well as for clothes and footwear. Despite the price spike, annual headline inflation remained unchanged at January's 2.2%, which exceeded the Central Bank's target rate of 2.0% 1.0 percentage points for the seventh consecutive month. Headline inflation has been rising since the start of 2010 and peaked in September 2010 at 2.4%. In its December inflation report, the Central Bank anticipates that inflation will end the year between 1.5% and 2.5%. For 2012, monetary authorities expect inflation to finish the year within the same range.
Author: Ricardo Aceves, Senior Economist