Peru: Inflation remains stable in February
March 1, 2012
In February, consumer prices added 0.32% over the previous month, which contrasted the 0.10% decline observed in January. The monthly reading slightly overshot market expectations of a 0.30% rise. According to the statistical institute, higher prices for housing, fuels and electricity, as well as for clothing and footwear were the main drivers behind the monthly rise. Despite the February monthly price rise, annual headline inflation remained stabled at January's 4.2%, the lowest level since October 2011. At the current level, however, inflation remains above the upper tolerance margin of the Central Bank's target of 2.0% 1.0%. In its December inflation report, the Central Bank expects inflation to fall within a range of 1.5% and 2.5% by the end of 2012 and to remain stable at the same level in 2013.
Author: Ricardo Aceves, Senior Economist