Peru: Inflation reaches fresh multi-year low in January
February 12, 2018
Consumer prices in Metropolitan Lima increased 0.13% in January on a monthly basis, below December’s 0.16% rise. January’s increase was mainly the result of higher prices for food and non-alcoholic beverages and rental housing, fuels and electricity. On the other hand, lower prices were recorded for transport. The increase in the prices for housing, fuel and electricity was again due to an increase in tariffs for residential electricity and potable water.
Inflation, subsequently, continued to moderate. It dropped to 1.3% in January from 1.4% in December, the lowest since May 2011. In January core consumer prices, which exclude energy and food, increased 0.2% from the previous month, up from December’s flat reading. Finally, core inflation remained unchanged at December’s 2.3% in January.
Peru Inflation Forecast
The Central Bank expects inflation to end 2018 at 2.0%. Panelists participating in the LatinFocus Consensus Forecast expect inflation to end 2018 at 2.8%, which is up 0.1 percentage points from last month’s projection. For 2019, the panel expects inflation of 2.7%.