Inflation slows in Peru; stood at 8.65%

Peru’s 12-month inflation, measured by the variation in the Consumer Price Index, reached 8.65% in October, showing a slowdown, after reaching its peak in June of this year at 9.32%, as reported by the National Institute of Statistics and Informatics (INEI).

Inflation is still high, with a downward trend due to the reduction in commodity prices at the international level, as explained by the Central Reserve Bank (BCR) in its Monetary Policy statement last month.

It should be noted that, only in the month of October, inflation reached 0.45%, with a slight decrease compared to the previous four months that in some cases monthly inflation exceeded 1 percent. The BCR has indicated that returning to the target inflation range, that is, between 1% and 3% annualized, would be in the second half of 2023, given this they remain cautious in the adjustments in the interest rate of their monetary policy.

The slow speed in the rate of deceleration that inflation has now, with an average of -0.16 percentage points of adjustment in the four months, leads to an arithmetic position, that inflation could reach its goal in 2024. However, However, this estimate is not conclusive, since they must be correlated with the behavior of the supply and demand of local and international goods and services.

“The monthly result is based on the increase in prices observed, mainly, in the consumer divisions: Transportation (1.50%) and Restaurants and Hotels (0.59%)”, according to the report.