Peru | Inflation rebounds slightly due to local supply problems

Summary

The Consumer Price Index of the city of Lima increased 0.52% m/m in September. The result was driven by the rise in food prices and water utilities, offset by lower transportation prices.

Key points

• Key points:
• In year-on-year terms, inflation increased slightly, standing at 8.5% (August: 8.4%)
• Inflation excluding food and energy, a trend measure of price changes, increased to 5.5% (August: 5.4%) reflecting more persistent inflation.
• Going forward, we expect inflation to fall in th and in our baseline scenario it would register around 7.5% at the end of the year and 3.5% at the end of 2023, returning to the target range at the beginning of 2024.
• In this context, we do not rule out the BCRP continuing to adjust its policy rate and raising it by 25 basis points this month.

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