Peru: Inflation rises in January
February 2, 2011
In January, consumer prices added 0.39% over the previous month, which more than doubled the 0.18% rise observed in December, and overshot analyst expectations of a 0.34% increase. The monthly price increase was mostly due to higher prices for housing, electricity and fuels, as well as for food and beverages. Owing to the strong monthly price increase, annual headline inflation rose from 2.1% in December to 2.2% in January, which exceeded the Central Bank's target rate of 2.0% 1.0 percentage points for the sixth consecutive month. Headline inflation has been rising since the start of 2010 and peaked in September 2010 at 2.4%. The Central Bank expects that inflation will end the year between 1.5% and 2.5%, according to its December inflation report. For 2012, monetary authorities expect inflation to remain within the same range.
Author: Ricardo Aceves, Senior Economist