Peru: Inflation edges up in January
February 1, 2014
Consumer prices for Metropolitan Lima increased 0.32% over the previous month in January, following the 0.17% rise registered in December. The print came in above the 0.20% increase the market had expected. The increase was broad-based, with six of the eight components that make up the index increasing in January. The largest expansions were recorded in food and beverages, as well as in transport and communications.
Annual headline inflation edged up from December's 2.9% to 3.1% in January. As a result, inflation now sits just a notch above the upper limit of the Central Bank's target of 2.0% plus/minus 1.0 percentage point.
In its December quarterly inflation report, the Central Bank indicated that it expects inflation of around 2.0% for both 2014 and 2015. LatinFocus Consensus Forecast panelists expect inflation to end 2014 at 2.5%, which is down 0.1 percentage points from last month's projection. For 2015, the panel expects inflation to ease to 2.4%.