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Flash
02 Aug 2016
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Today’s is the last edition of our LatAm Daily Flash. For updated macroeconomic analysis of Latin America, please visit our webpage bbvaresearch.com. For daily comments on Latin American markets, please see our report Latin America Daily Update at bbvagmr.com.
The CPI increased by 0.08% MoM in July (BBVA: 0.0% MoM; market consensus: 0.24%), explained by the seasonal increase in transport prices, which was offset by the fall in food prices. With this monthly result the annual rate of inflation reached 3.0% YoY and stood within the target range BCRP 2.0% +/- 1 percentage points. Furthermore, inflation trend indicators continue to show a decline, suggesting the absence of demand pressures. These more favourable price developments give the Central Bank room to possibly ease its monetary policy stance if private spending does not improve in the coming months.
We expect industrial production to have expanded somewhat in monthly terms in June (precisely, around 0.5% MoM), reinforcing the view that the worst in terms of growth is already over.