Peru: Inflation rises to the highest level in more than two years
January 2, 2012
In December, consumer prices rose 0.27% over the previous month which, although below the 0.43% increase tallied in November, still overshot market expectations of a 0.13% rise. According to the National Statistics Office, the monthly reading reflected higher prices for transport and telecommunications. Compared to the same month the year before, headline inflation inched up from 4.6% in November to 4.7% in December, which represents its highest level since March 2009. The reading marked the sixth consecutive month in which inflation has hovered above the upper tolerance margin of the Central Bank's target of 2.0% 1.0%. As outlined in its December inflation report, the Central Bank expects inflation to fall within a range of between 1.5% and 2.5% by the end of 2012, which was revised down from its previous 2.0%-3.0% range estimate. For 2013, the Bank sees inflation remaining at between the 1.5% and 2.5% range.
Author: Ricardo Aceves, Senior Economist