Peru: Inflation eases on food prices
November 1, 2012
In October, consumer prices for Metropolitan Lima fell 0.16% over the previous month, which contrasted the 0.54% increase observed in September. The monthly drop, the sharpest since August 2009, reflected lower prices for food and beverages as well as for transport. As a result, annual headline inflation fell from 3.7% in September to 3.3% in October, which represents the lowest level since June 2011, and came in below market expectations of 3.5%. Despite the monthly drop, inflation remains above the upper tolerance margin of the Central Bank's target of 2.0% plus/minus 1.0 percentage points. The Central Bank expects inflation to fall to 3.0% by the end of the year. For 2013, the Bank sees inflation falling further within a range of 1.5% and 2.5%.
Author: Ricardo Aceves, Senior Economist