Peru: Inflation rises to highest level in nearly a year
September 2, 2013
Consumer prices for Metropolitan Lima added 0.54% over the previous month in August. The reading followed July's 0.55% rise and overshot market expectations of a 0.50% increase. The monthly increase reflects higher prices for food and alcoholic beverages as well as for housing and fuels.
Annual headline inflation rose from 3.2% in July to 3.3% in August, the highest reading since September 2012. Following the August increase, inflation remains above the Central Bank's target of 2.0% plus/minus 1.0 percentage point.
The Central Bank's June inflation report indicated that it expects inflation to end both this year and next within a range of 1.5% to 2.5%. LatinFocus Consensus Forecast panellists expect inflation to end 2013 at 2.5%, which is unchanged from last month's projection. For 2014, the panel expects inflation to inch down to 2.4%.
Author: Ricardo Aceves, Senior Economist