Peru: Inflation remains stable in March
April 2, 2012
In March, consumer prices rose 0.77% over the previous month, which represented the steepest monthly rise since July 2011. The reading was above the 0.32% increase observed in February and market expectations that had consumer prices increasing 0.60%. According to the National Statistics Institute, the monthly spike reflected higher prices for food and non-alcoholic beverages as well as for culture and education, as a result of the start of the academic year. Despite the monthly jump, annual headline inflation remained stable at 4.2% for the third consecutive month. 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 March Inflation Report, the Central Bank revised its inflation forecast and now expects it to fall within a range of 2.0% and 3.0% by the end of 2012, up from its previous 1.5%-2.5% range. For 2013, the Bank anticipates inflation will fall within a range of 1.5% and 2.5%.
Author: Ricardo Aceves, Senior Economist