Peru | Headline inflation eases again in October… but core inflation accelerates

Summary

The Consumer Price Index for the city of Lima increased 0.35% MoM in October. This is mainly a result of the increase in the prices of transport and restaurants.

Key points

• Key points:
• In YoY terms, inflation decelerated in October, reaching 8.3% (September: 8.5%).
• However, inflation excluding food and energy, a trend measure of price changes, accelerated from 0.3% in September to 0.5% in October (5.7% YoY).
• In the following months, we expect inflation to continue decreasing, but more slowly due to higher observed persistence.
• The Central Bank will probably continue to tighten the monetary position in the remainder of the year, in spite of the loss of dynamism in economic activity.

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