Peru: Inflation rises to highest level in over two years
October 1, 2011
In September, consumer prices added 0.33% over the previous month, which was above both the 0.27% rise observed in August and market expectations of a 0.26% rise. According to the National Statistics Institute (INEI), the monthly price rise reflected higher prices for transport and communications (+0.51%), particularly due to higher fuel costs. As a result of the monthly rise, annual inflation jumped from 3.3% in August to 3.7% in September, which represents the highest level since May 2009. The reading marked the third consecutive month in which inflation has hovered above the upper tolerance margin of the Central Bank's target of 2.0% 1.0%. As outlined in its September inflation report, the Central Bank expects inflation to settle within a range of between 3.5% and 4.0% this year. For 2012, the Bank anticipates inflation will end the year within the 2.0 and 3.0% range.
Author: Ricardo Aceves, Senior Economist