Peru | Inflation experiences a transitory rebound in July

Summary

Lima's Consumer Price Index rose 0.46% m/m in July, above market expectations (Bloomberg Consensus: 0.06% m/m). With July's monthly result, year-on-year inflation accelerated to 1.9%, compared to 1.6% the previous month.

Key points

• Key points:
• The result was led by a transitory increase in the prices of some foods, higher residential electricity tariffs and the rise in house rental prices.
• Inflation excluding the food and energy component, a core measure, fell to 1.8% in June.
• Looking ahead, we expect inflation to decrease and close the year below the lower bound of the central bank’s target range (2% +/- one percent), mainly due to weak demand.

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