Peru: Inflation rises in June
July 1, 2013
In June, consumer prices for metropolitan Lima rose 0.26% over the previous month, which came in above the 0.19% increase recorded in May. Higher prices for transport and communications as well as for housing, fuel and electricity were the main drivers behind the monthly increase.
As a result of the monthly price rise, annual headline inflation rose from 2.5% in May to 2.8% in June. Notwithstanding the rise, inflation still sits within the Central Bank's target of 2.0% with a tolerance margin of plus/minus 1.0 percentage points.
In its June inflation report, the Central Bank expects consumer prices to end both this year and next within a range of between 1.5% and 2.5%. LatinFocus Consensus Forecast panellists are slightly less optimistic and expect inflation to end 2013 at 2.6%, which is unchanged from last month's projection. For 2014, the panel expects inflation to fall to 2.5%.
Author: Ricardo Aceves, Senior Economist