Peru: Inflation rises to highest level in over two years
December 2, 2011
In November, consumer prices added 0.43% over the previous month, which came in above the 0.32% increase observed in October but was in line with market expectations. According to the National Statistics Institute, the monthly jump reflected higher prices for food and non-alcoholic beverages, as well as for clothing and footwear. Compared to the same month last year, headline inflation rose from 4.2% in October to 4.6% in November, which marked the highest level since April 2009. The reading represents the fifth consecutive month in which inflation has hovered above the upper tolerance margin of the Central Bank's target of 2.0% 1.0%. The Central Bank expects inflation to fall within a range of between 3.5% and 4.0% by the end of this year. Next year, the Central Bank sees inflation falling further to between a 2.0% and 3.0% range.
Author: Ricardo Aceves, Senior Economist