Most recent posts from Peru

Peru's economic activity grew 1.8% year-on-year in June, moderating from the previous month. This slowdown was due to the contraction of primary sectors (-7.2%) because of climate anomalies and lower production. In contrast, non-primary sectors, driven by domestic demand, grew by 4.2%.

The Central Reserve Bank of Peru decided to maintain its benchmark interest rate at 4.25% for the eleventh consecutive month. Although inflation is expected to return to the 2% target range, there are warnings of risks such as the El Niño phenomenon and geopolitical tensions that could generate more persistent effects.

Year-on-year inflation in Peru rose to 4.1% in July (0.29% monthly), exceeding the central bank's target range. The increase is attributed to food supply restrictions and seasonal factors. Core inflation, which excludes food and energy, also picked up, standing at 4.6% year-on-year.

Peru's economic activity grew 1.8% year-on-year in May, below expectations, due to climate anomalies that impacted primary sectors. Despite this, non-primary sectors, driven by domestic demand, maintained their dynamism.

BCRP kept its policy rate at 4.25% for a tenth straight month, in line with expectations. Headline (4.0%) and core (4.5%) inflation remain above target, and the statement points to somewhat slower convergence. We do not rule out a policy rate adjustment in the coming months.

The Big Data Private Consumption Index grew 7.7% year-on-year in June, marking its fifth consecutive month of deceleration as the positive effects of the extraordinary pension fund withdrawals that began in November 2025.

The conflict in the Middle East has caused a global economic shock in 2026 that is impacting Latin America. Rising commodity prices and logistics costs have triggered a spike in inflation and a slowdown in economic growth.