Peru | Inflation surprises in October, due to rising food prices

Inflation in Peru accelerated in October to 5.3% year-on-year, exceeding the target range for the eighth consecutive month. The rise was mainly due to supply shocks in food and transport. Core inflation, which excludes food and energy, also rose, reaching 4.6%.

Key points

• Key points:
• Monthly inflation was 0.57%, a figure much higher than the 0.13% anticipated by the analyst consensus.
• The rise in food prices is explained by the increase in fish and seafood (11.7%) and vegetables, legumes, and tubers (8.2%), such as corn (45.3%).
• In transport, increases in international airfare (4.4%), domestic airfare (3.7%), and vehicle fuels (3.6%) stood out.
• The Central Bank is expected to raise its monetary policy rate in the coming months, accumulating a 50-basis-point increase to place it at 4.75%.

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