Peru | Inflation falls in April following a downward correction in food prices

In April, the Consumer Price Index decreased by 0,10%. With this outcome, inflation fell from 2,6% in March to 2,4% in year-on-year terms, mainly explained by the normalization of food prices.

Key points

• Key points:
• Inflation excluding food and energy decreased from 1,8% in March to 1,7% in April.
• The downward correction observed in April is a result of the normalization of food prices, partially compensated by higher fuel prices and a new tariff readjustment.
• The reversion of transitory shocks that pushed inflation up in the first months of the year and households spending weakness will result in a decrease in YoY inflation. An appreciation of the local currency, conditional on the measures announced and implemented by the new administration, would contribute to lower inflation as well.
• Our inflation forecast for this year is of 2,3%.

Authors

Geographies

Topics

Tags