In Peru annual inflation moderated significantly and we believe there is room for the CB to implement monetary stimulus if needed

Annual inflation moderated significantly, influenced by fuel prices and went back inside the CB’s target range. We maintain our forecast of a gradual decline in inflation in the coming months due to lack of demand pressures although the depreciation attenuates this downward trend. We believe there is room for the CB to implement additional monetary stimulus due to the continuing cyclical weakness in the economy.

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