Peru: Inflation returns to Central Bank's target range
December 1, 2012
In November, consumer prices for Metropolitan Lima fell 0.14% over the previous month, which followed the 0.16% drop recorded in October. The monthly figure reflected lower prices for food and non-alcoholic beverages as well as for transport and communications. As a result of the monthly drop, annual headline inflation declined from 3.2% in October to 2.7% in November, which represents the lowest level since February 2011.
The reading was virtually in line with market expectations, which had inflation at 2.8%. As a result, inflation returned to the Central Bank's target of 2.0% plus/minus 1.0 percentage points, after consumer prices had hovered above it during 16 consecutive months. For 2013, the Bank sees inflation falling further within a range of 1.5% and 2.5%.
Author: Ricardo Aceves, Senior Economist