Peru | Inflation closed 2025 at 1.5%, its lowest year-end rate in eight years

Summary

CPI rose 0.24% m/m in December. As a result, annual inflation closed 2025 at 1.51%, within the Central Bank’s target range and at its lowest level in eight years, reflecting a contained inflation environment.

Key points

• Key points:
• Inflation in 2025 was mainly driven by services, particularly education, restaurants and hotels, and other personal services, amid a recovery in domestic demand.
• Energy and communications acted as disinflationary anchors, while transport showed a moderate increase partly offset by lower fuel and vehicle prices.
• Core inflation remained stable at around 1.8% y/y, pointing to an underlying price trend consistent with the target range.
• No changes are expected in the BCRP’s policy rate, which remains at 4.25%, within the estimated neutral range.

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