Peru: Inflation jumps in August
September 1, 2012
In August, consumer prices jumped 0.51% over the previous month, which was above the 0.09% increase observed in July and overshot market expectations that had consumer prices rising 0.24%. The monthly rise reflected an increase in prices for food and beverages as well as for energy costs. Building on the monthly increase, annual headline inflation climbed to 3.5% in August, up from 3.3% in July, and thus halted the downward trend in place since January. Moreover, 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 within a range of 2.0% and 3.0% by the end of 2012. For 2013, the Bank sees inflation falling further within a range of 1.5% and 2.5%.
Author: Ricardo Aceves, Senior Economist