Peru | Inflation's going down again... and we estimate it's going to continue falling

Lima's Consumer Price Index increased +0.10% m/m, slightly more than the market consensus anticipated (Bloomberg Consensus: +0.04% m/m). With the monthly result for April, year-on-year inflation decreased for the second consecutive month, to 1.7% YoY.

Key points

• Key points:
• On the other hand, inflation excluding food and energy, a more price-oriented measure, accelerated to 1.9% YoY (from 1.7% YoY in March).
• Going forward, in a context of weak demand, a gradual transmission to local fuel prices of the decline that has had the international price of oil, and some appreciation of the PEN, we anticipate that inflation will close the year around the floor of the central bank's target range (1%YoY).

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