Peru | Inflation reaches new maximum since 1998 in May

The Consumer Price Index for the city of Lima increased 0.38% MoM in May. This is a result of the increase in the prices of transportation and food and non-alcoholic beverages, in a context of higher international prices of fuels and foodstuffs.

Key points

• Key points:
• In YoY terms, inflation slightly accelerated in May, reaching 8.1% (April: 8.0%).
• Inflation excluding food and energy, a trend measure of price changes, drifted further away from the target range: it increased from 3.8% YoY in April to 4.3% in May.
• In the following months, we expect inflation to remain high due to higher and more persistent international prices for fuel and some foodstuffs because of the conflict in Europe.
• We revise our inflation forecast to 6.0% for 2022 and expect the Central Bank will continue to tighten the monetary policy stance in June, hiking it by 50bp.

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