Peru | Year-on-year inflation reaches a new maximum in March

Summary

The Consumer Price Index for the city of Lima increased 1.48% MoM in March. This is a result of the increase in the prices of food and non-alcoholic beverages, education, and transportation, in a context of higher international prices of foodstuffs and fuels.

Key points

• Key points:
• In YoY terms, inflation accelerated in March, reaching 6.8% (February: 6.1%).
• Inflation excluding food and energy, a trend measure of price changes, drifted further away from the target range: it increased from 3.3% YoY in February to 3.5% in March.
• In the following months, we expect inflation to remain high due to the persistence of higher international prices for fuel and some foodstuffs because of the conflict in Europe.
• For year-end 2022, we revise our inflation forecast to 5.0%.
• In this context, the Central Bank will continue to tighten the monetary policy stance in the following months, taking the policy rate to 5.50%.

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