Peru: Inflation rises in January
February 1, 2013
In January, consumer prices for metropolitan Lima rose 0.12% over the previous month, which came in below the 0.26% increase observed in December and fell short of market expectations that had consumer prices rising 0.19%. According to the statistical office, higher prices for food and non-alcoholic beverages as well as for housing, fuels and electricity were the main driver behind the monthly increase. As a result of the monthly increase, annual headline inflation climbed from 2.6% in December to 2.9% in January, which represents the highest level since October. Nonetheless, inflation remains within the Central Bank's target of 2.0% plus/minus 1.0 percentage points. In its December inflation report, the Central Bank expects inflation to fall within a range of between 1.5% and 2.5% in 2013. For 2014, the Bank sees inflation remaining in the same range.
Author: Ricardo Aceves, Senior Economist