Peru | Negative inflation in August

Summary

Lima's Consumer Price Index fell 0.11% m/m in August, in line with our expectations and the market (Bloomberg Consensus: -0.08% m/m), the second lowest figure so far this year. With this result, year-on-year inflation decreased to 1.7%, compared to 1.9% the previous month.

Key points

• Key points:
• The result was led by a decrease in the prices of some foods and gas.
• Inflation excluding the food and energy component, a core measure, remained at 1.8% in August.
• Looking ahead, we expect inflation to decrease and close the year near the lower bound of the central bank’s target range (2% +/- one percent), mainly due to weak domestic demand.

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