Peru | Inflation remains comfortably within the target range

Summary

The consumer price index increased 0.09% m/m in November. The result for the month is mainly explained by the increase in the prices of some foods, electricity rates, and domestic gas. With this result, the interannual inflation rate stood at 2.3% in November, in the center of the BCRP's target range.

Key points

• Key points:
• The component of the consumption basket that excludes food and energy, a more trendy measure of the pace at which prices advance, increased 0.06% m/m in November, so that in year-on-year terms it showed a variation of 2 .6%, six hundredths of a percentage point above that of the previous month.
• At BBVA Research we estimate that year-on-year inflation will be 2.2% at the end of the year, a level not very different from that of November. For next year, in a context of relatively normal weather conditions (according to the forecasts of specialized entities), slack in the economy that is gradually closing, and anchored inflationary expectations, we anticipate that inflation will remain within the target range, ending 2025 around 2.5%.

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